An element that is positioned absolutely will be positioned in relation to its nearest parent that has position absolute or relative. In the absence of such a parent, the viewport gives the positioning context.
In your case, you need to add position: relative to the header div:
Code:
#header {
background: url('/images/Banner.jpg');
height: 120px;
width: 960px;
position:relative;
}
You may also want to change the positioning of the form, as it will move position a little bit now that it is measuring its position from the left side of the header.
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