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Customizing themes can be challenging until you've been at it for a little while. One of the tools I use to investigate and tweak css is called Firebug. It's a great Firefox plugin - you can find it here: http://getfirebug.com/.
Essentially, when you turn it on a little window opens at the bottom of your browser, you select the point/selection tool in the upper left and point it at a page element to reveal the html and css code behind it. You can even edit the code in the window and see instantly how your changes will look before you edit the actual code.
Using the tool, I found the css code for your text size is on line 25 of the style.css document. Under the appearance menu, select editor and then make sure you are editing style.css - usually it is the default file that appears but make sure. Then, look for this code:
background: url("images/bg.png") repeat-x scroll center bottom #000000;
And change the font-size to a size that works better for you.
Not sure about the issue with the header. Have you optimized the image for the web and sized it to the proper dimensions? I might need a little more info to help you with that one. Feel free to respond here or reach out to me directly.
Hope that helps get you started!