Thats a LOT better... Comments:
1) Do a little research into using styled DIV's for layout... Using tables is a bit of a no-no.
2) The header block doesn't seem to quite line up with the main block (I have a picky and pedantic eye
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3) try designing it so the background white (the white behind the main site block thing) is slightly greyed out (maybe #999999) - not VERY day, but enough to distinguish it from the main site
4) I like the outer-glow shadows, however they've been clipped to close so they look a little odd.. try either shrinking the shadow and keeping the same size image or give the shadow more room.
5) Use a little padding on the text inside to bring it in a bit - looks a bit close to the edge (imho)
Its looking a LOT better that before, much more designed. In terms of SEO, it's not a fantastic idea to use images for links in that the search engine cant see what the links about. Using text means the SE can see the word "projects" and know where that links goes - it helps it work out your site structure + it can help to describe the page content.
I REALLY like the flame header - very nice touch... Although it looks like a couple of the repeating blocks don't quite line up - they look about a pixel out.
EDIT:
What did you use to design it? I personally use Photoshop... Layering and effects are much better suited to web design and, once I got used to it, I really see why it costs more than Paint Shop Pro.
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