1.) I had to greatly increase the padding to get the left, top and bottom of the image to fully display. The original code below works in a regular HTML site using the same HTML and CSS with no issues. The only difference is that Teamsite is not involved.
Not sure if TS would be the problem. When you compare the output of the PT to the original code, is the HTML and CSS identical? If so, are you using a different browsers or browser version to view the differences between TS and the originals?I would recommend using a web inspector (like Firebug), to determine if any extra styles are being applied when viewing in TS which is changing the display.