You can update the images and click-through locations for your image panels using the Admin Pages for the upper and lower panels. If you would just like to remove the blank image areas you can remove the image panels and have that space used for the chat room itself.
The "Upper Panel" on the top left
The "Lower Panel" on the bottom left
Image sizes:
1 - Upper Panel size: up to 325x60
2 - Lower Panel size: up to 500x60
Size Limit: under 15k

Step 1.
Log into your Admin Pages.
Step 2.
From the Groups settings page, select the room where want to edit the image panels, and click the 'Edit' button.
Step 3.
You will be brought to a page that contains your room settings. To enter the image panel area, click on the 'Edit Image Panels' button. You will be brought to the Image Panel customization page.

Step 4.
In the 'Image URL' field enter the URL of the image you wish to upload.
Image URL Sample Format: http://www.parachat.com/images/logo.gif
Step 5.
In the 'Click-Thru URL' field, enter the URL of the destination webpage for that image.
Click-Through URL Sample Format: http://www.parachat.com

Step 6.
Click on 'Update Panel Image', and your new image gets uploaded.
Step 7.
Repeat steps 4 thru 6 for the lower image panel if you wish to have an image displayed in the lower image panel area.

Step 8.
Exit and navigate to the page which contains your chat room so you can see the images in action.
Remember to always refresh or exit/restart the browser after a image change so you do not get a cached version and you are able to see the change!