You can get the line between the managers to go away by doing this:
Right click in the view, choose format, click on the borders icon at the top of the format window, then under Column Divider slide the "Level" to the left. That will remove the line.
I don't have v9.3 so I couldn't open the workbook. I looked at a couple other forum posts and it looks like people are mostly using a workaround to get the headers at the bottom. You might want to turn the headers off and use text boxes. Not ideal but in some situations it will work.
Hope that helps.
You simply need to change the chart type. Click on "Show me" in the top right hand corner to get the drop down, and click on Stacked bars (in the middle, 3 down) instead of side-by-side bars.