This problem exists in Volcano 3.0 (and perhaps elsewhere). Redownload Volcano: it is currently at 3.3 and that version does not have the problem. I used to see a big blank space between banner image and beginning of text in 3.0: now all solved with 3.3.
I believe RW7 changed some of the language/scripting for aspects of a theme so Will needed to adjust (as did others presumably). As I understand it from Will:
… changing the ALT macro for banner images from %banner_alt% to %banner_alternate_text% that will require an update to all themes and similar changes are proposed for site logo images too.
I received this from Will in March, so things could have changed between then and final RW7 release. At any rate Volcano 3.3, and presumably updates to other themes, solves the problem.