I have a clean install of DNN 4.8.0.  If i put an image inside a text/html module there is a space/blank line above the picture instead of touching the content above it.  To see what i am talking about visit www2.arrayasolutions.com.  There is a main body picture right below the menu, that should be touching the bottom of the menu.  This is the Solpartmenu, so maybe that is the problem.  Any suggestions would be appreciated.  I have removed all CSS, and even recreate the skin from scratch to ensure there are no extra lines of code that might be causing  the problem. 

I think this could be caused by the <P> the editor encloses the image in</P>...

Check the source  and remove it in the editors source view, or set the or set its margin-top to 0 with CSS

If you are comfortable with hand-coding HTML, I would stop using the editor altogether, as it will change many things in your mark-up.  To do this, you would select "Basic Text Box", and then select it to be in HTML mode.  If you are not comfortable with hand-coding HTML, then use a software-based HTML editor first (such as Dreamweaver, VS.Net, VWD, etc.), then copy and paste the generated mark-up into the textbox (not the editor).