If you set his position under PROPERTIES to 164, 420 (it is 164, 297 right now), your spaceship will be at the bottom of your screen.
It will not be visible until you move him up with the up arrow, but at least everything scrolls properly.
at 164, 400, everything except the fire form the engines is visible at first.
I liked it best when the position was set to 164, 390.
I hope this is what you wanted. You can always tell the computer that
on start of layout - spaceship - set x to 164 and set y to 390
Ps. Looks really cool!