The problem doesn’t really have anything to do with the reset but is caused by the top margin on your container here.
#container {
width:900px;
[B]margin:70px[/B] auto 20px auto;
height:800px;
border:solid 1px red;
}
That margin collapses onto the body and moves the body down the page by 70px.
You can stop the margin collapse by adding a 1px padding top to the body element.
body{padding:1px 0 0}
As a rule of thumb don’t add any styles to the html element except for removing margin and padding. All other styles should go on the body element instead (e.g. background-color).