I'm having a few problems with my layout.

It's supposed to look like this:click (http://img68.exs.cx/img68/5259/lay5ex.gif)

But it looks like this: click (http://www.dazzlindollies.com/cs/blueorange1.html)

Why is the blue middle part showing up transparent? =/

Your site looks messed up in both ie and firefox. The first thing you might want to do is just use 1 iframe instead of 2, 1 in the other. You can just place the image in the center without using an iframe. Then maybe you could look at this tutorial for making transparent iframes http://www.dont-stay.com/herwords/transiframes.php

How do you center the layout but not have the iframe off center?

You can use the <center> tags to center it horzontally then put the rest in a table and in the table, use valign="middle" or center I forget which to center it vertically. This way, It'll center whatever you put up.