OK, so here is 1 solution. On the CCR-logo cell, keep the height, width and padding all set to 0, and add an HTML style "height" and set it to "122px". Then change the cell's HTML to:
<img src="file:///<home>\images\testCCRheader.jpg" border="0" height="100%" width="100%">
(I added height and width attributes.)
This make the cell have a minimum of 122px height (which is the height of your image). If stretched beyond that height, the image will also stretch.
I'm honestly not certain why this behaves the way it does. I'm sure if I dug in deep I could figure it out. There are some fundamental things about the way the layout works that I would change if I could. I was a lot less experienced with that sort of thing when I first implemented it. Unfortunately any changes of that nature now would likely break so many existing layouts.