You have three things to do:
(1) If you are using a copied classic theme, you need to change the link in your template.html to the stylesheet of your copied theme. Right now it points to the classic theme stylesheet.
(2) Open your theme's stylesheet and find .imageborder and change the margin-top and margin-bottom to '0px'.
(3) Now you just have to remove the admin_menu cell used when you can do the admin things like Crop, Edit, Delete. If you haven't modified your theme.php file much yet, you probably don't have the $template_display_media variable in there. If that's true, go to the sample/theme.php and copy the block from this line:
// HTML template for intermediate image display
$template_display_media = <<<EOT
up to and including this line:
EOT;
which is just before this line:
// HTML template for the image rating box
Then add the first line and last line shown below (with BEGIN & END comments) around the lines in between:
<!-- BEGIN admin_menu -->
<table width="100%" cellspacing="2px" cellpadding="0px" class="tableb">
<tr>
<td align="center">
{ADMIN_MENU}
</td>
</tr>
</table>
<!-- END admin_menu -->
This marks the admin_menu block so you can remove it when it's blank. To actually do this, you need to copy the function theme_html_picture(). It's a fairly large function and you need to copy it all. For reference, the next function is theme_html_img_nav_menu(). Copy to just before function theme_html_img_nav_menu() and make sure to include the } curly brace that defines the end of the function. Then in this function, go to the first line shown below, and add the next 3 lines as shown:
$CURRENT_PIC_DATA['menu'] = html_picture_menu();
if (!$CURRENT_PIC_DATA['menu']) {
template_extract_block($template_display_media, 'admin_menu');
}
That should do it. Hopefully from this, you'll learn how to do other customizations to your theme.