I wanted to add a donate button but when it was added it works and all but it sits on top of register button or the logout button and pushes it down. And doesnt have the images behind it the index.template is attached.
We don't give support to SMF here. You can get support from sm.org.
Grafitus is right -- for general SMF theme- and button-related questions, you are likely to get a lot of response quickly at http://simplemachines.org (http://simplemachines.org)
I'm sure they'll have you sorted in no time.
Happy New Year!