[elegant-box Theme] Adding a logo

I am using elegant-box theme with my blog and would like to add a logo to my blog. Elegant-box theme can be found at http://ww.wp.xz.cn/extend/themes/elegant-box.

I have kind of worked out what to modify in the header.php file to publish the logo (code below) but don’t know how to remove the horizontal bar on the next hand side of the logo and to add extra horizontal space in the header area where the logo will go.

<div id=”header”>
<div class=”inner”>
<div class=”content”>
<div class=”caption”>
<h1 id=”title”>
/” title=”<?php bloginfo(‘description’); ?>”>
<?php //bloginfo(‘title’); ?>
<img src= “http://www.mywebsite.com/wp-content/themes/elegant-box/images/mysite_logo.png&#8221; border= 0>

</h1>
<div id=”tagline”><?php bloginfo(‘description’); ?></div>
</div>

Thanks for help.