Vanilla 1.1.9 is a product of Lussumo. More Information: Documentation, Community Support.
Personally, I love it and I try to use it in as many websites as I can. For Flash Pearls, I modified it to also incorporate a dropshadow and text fade-in (check out each page's header text).
I will admit it's intimidating to use at first, and it does take some tweaking when you first set it up. Some common problems you may run into when first using sIFR are not including all the essential styles and not having the correct path to your SWF file (it needs to be relative to the page, not the JS file).
If you're having trouble with sIFR, there's a forum over at http://forum.textdrive.com/viewforum.php?id=20
If the pages you're working with are PHP, check out PHP + CSS Dynamic Text Replacement (P+C DTR). There's no extra JS markup like sIFR which is great (cleaner code and easier to set up), but the text is not selectable (which may or may not be an issue for you).
Ah, and I agree with Sam K, it is a bitch to get running if you haven't done it before. Tweaking for like 4 hours...
Dunk Ra,

As you can see, the block of text for your H3 is correctly positioned at the top and 10px to the left. Your padding is also at 0px, but it does not appear that way because your text does not have any characters that fill up the entire height & width. If you set the padding of that H3 to 1px instead of 0px, you'll see that it does in fact add 1px of padding, which shows the 0px of padding is properly being applied.

Now what you really want to know is how to fix this. You'll have to do some testing, but I imagine if you were to go into the sIFR Flash file and set the text's y-value to -4px and then export it, then you'll have the 0px top padding you're looking for. Tradeoff of that is it would create additional padding on the bottom. That could be fixed by hacking that JavaScript that determines the size of the text box. But that's probably more effort than you're looking to do.
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