Can someone help me hack magaize basic? php help please!

I need some help altering Magazine basic. I know enough to know it is some simple PHP changes but I do not know how to make them.

PROBLEM #1

I want the the Latest story pic to be larger. This seems to be a common request for this theme. The theme maker has a bit about it on his support forums but not specific instructions for someone as dumb as I am.

The code I have included in the loop.php file to change the size of the thumbnails is commented out. You will see /* before and */ after it. I just placed it there so that people could copy this file over to their child theme and uncomment that code and then comment out the original code above.

Code (markup):

The .php he is talking about in the loop.php file is

   if(theme_option('excerpt_content')!=2) {
                            if(function_exists('has_post_thumbnail') && has_post_thumbnail()) {
                                echo '<a href="'.get_permalink().'">';
                                the_post_thumbnail('thumbnail', array('class' => 'alignleft'));
                                echo '</a>';
                            } else {
                                echo resize(get_option('thumbnail_size_w'),get_option('thumbnail_size_h'));
                            }
                            /*if(function_exists('has_post_thumbnail') && has_post_thumbnail()) {
                                echo '<a href="'.get_permalink().'">';
                                if($x==1) {
                                  the_post_thumbnail(array(150,150), array('class' => 'alignleft'));
                                } elseif($x>1 && $x<4) {
                                  the_post_thumbnail(array(100,100), array('class' => 'alignleft'));
                                } else {
                                  the_post_thumbnail(array(80,80), array('class' => 'alignleft'));
                                }       
                                echo '</a>';
                            } else {
                                if($x==1) {
    echo resize(400,400)
} elseif($x>1 && $x<4) {
    echo resize(100,100);
} else {
    echo resize(80,80);
}
                                }                               
                            }*/
                            theme_excerpt($wordlimit);
                        } else {
                            the_content(__('Read more &raquo;', "magazine-basic"));

Code (markup):

Can someone tell me what I have to alter or better yet alter it and post it in a reply so I can copy and paste it in? I know I am asking tons.. I of course offer rep and thanks for the help.

PROBLEM # 2

I deployed this theme here

http://advocatenews.net

Code (markup):

I want to put a space into the theme where I can place an ad if I want to. Something like a banner I would sell people. I have quick adsense installed so I can easily have ads appear in the body of the post but I want a space so that it appears below my header on every page. I have no idea where I would even begin to adjust code. In the .css stylesheet I imagine? I don't suppose there is a caring soul out there willing to do this for me?