NOTE: I have applied display:block; to the image that I use in the header section of all my other pages (flash is not used in these header sections) to remove the gap. This works fine. I tried applying display:block; to the script tag on my home page that embeds the flash but this didn't work.
I've been provided with a solution that works. All I needed to do was ad the following to my css:
The second paramet in SWFObject() is the id of the object tag.
Thanks to all who took a look at my problem.