To upgrade the theme, login to your Theme Forest account then go to your downloads page and re-download the Newscast theme. There have been a number of updates.
The change you need to make to the theme to show the whole logo in the black area are:
1.) Change the padding-top to around 200px in style.css (around line 181):
.nav_wrapper {
height:36px;
padding-top:125px;
position:relative;
z-index:6;
}
2.) Use the included PSD to create a header area background that matches the height you change the padding to.