No, you can't make the image stretch. Well, you can, but it's a lot more complicated than I assume you want to get into. A background image will tile by default, but you can tell it to not repeat if you use CSS.
Under the code you posted (which is for the cell with the Contact Us graphic) there should be another <td> cell. It should be empty right now, and would formerly have held the Lorem Ipsum text. If it's not there, that would be one problem. That is the cell that you should set to 100% height and width to force everything else to sit where you want.
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