I think it would look a lot nicer if you ditched the blue and went with a nice contrasting color. Use a, I dunno, yellow background or something. Not something TOO bright, but something kinda nice. Or maybe a nice little greenish or something.
Well, I'll do better, I'll put my money where my mouth is. Here's a little mock up. The alignment isn't quite perfect, but it'll give you an idea.
See how you guys like this. I'd be happy to edit the REAL logo the same way, I'd just ideally need a higher quality version to start with.