Place Gadget Above The Posts?

It's sometimes possible to create a page element and then slide it across (drag and drop) the blog and drop it above the posts.

If that won't stick, you may have to find this line in your "edit html" (template):

<b:section class='header' id='header' maxwidgets='1'>

and change the maxwidgets number to 2. Don't neglect to Save template before you return to the Layout page.

Now you should be able to "Add a gadget" from above the header. Then you can drag and drop that new Page Element below the header, where of course it'll be above the posts.