Relative positioning should do the trick but, you've got another problem. In Mozilla (Firefox and probably many other browsers based on Mozilla) I can scroll the content in the iframe by clicking on it and using either the mouse wheel or the up/down keys. In IE6 I just can't get it to scroll. Anyways, try this to position it:
Code:
<iframe name="ikon" id="datamain" style="position:relative;left:-25px;top:-35px;" src="http://ikonmusic.net/index2.html" marginheight="0" marginwidth="0" hspace="0" vspace="0" allowtransparency="true" frameborder="0" height="100" scrolling="no" width="250"></iframe>
Those are negative values moving it to the left (reducing its distance from the left) and top (reducing its distance from the top). Adjust as needed. About the scrolling, I see you've removed the scrolling controls that come with this script. I'd think about putting them back. You could replace the text with small images resembling arrows or just use small triangles one pointing up, one down.
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