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Its probably the text size in your browser. In the browser go to view -> text size...then adjust accordingly. But if your using a default text size and it seems to big with your browser you have to think people viewing your page are using the default size. You should probably adjust the text in dreamweaver to something smaller.
To overlap pictures and text you need to use CSS and absolute positioning. I'm not sure if this is the only way to do it but it works.
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