Finally making progress! My issue with resize was the following in template.css. I just commented it out and now the image fader shrinks as desired.
/*div.s5imageslidesetup {
height: 100%;
position: relative;}
*/
My next issue is the logo is overlapping the image fader. Please look at
http://new.selfrefind.com, resize the page to mobile and you will see the logo overlap the image. How can I fix this?