HI All.
Just thought I'd update this with the solution I came up with.
As Alex pointed out, the template is limiting the height of my dropdown box and changing that via php or css will likely affect the other dropdowns in the menu.
So I focused on the JFBC additions to the dropdown and found the Id 'profile-pic'.
I then added a line of css to the templates 'custom.css' ...
#profile-pic { float: right; }
...that floated the picture to the right in the dropdown and 'left' room on the left for the text and 'Logout' button.
And all is sweet again.
Cheers,
Tim.