Hope I have understood your question correctly, that is you want to in a way merge the action bar with the tabs so there is no border in between -> the line or shadow you mentioned. If that is correct, then this is what you are looking for:
Add this to your MyAppTheme
:
<item name="android:actionBarStyle">@style/LineRemover</item>
and change this line:
<item name="android:windowContentOverlay">@null</item>
to this:
<item name="android:windowActionBarOverlay">true</item>
and then add the following style below:
<style name="LineRemover" parent="android:Widget.Holo.ActionBar">
<item name="android:background">@android:color/transparent</item>
</style>
In the end you have something like this:
<style name="MyAppTheme" parent="@android:style/Theme.Holo.Light">
<item name="android:windowActionBarOverlay">true</item>
<item name="android:actionBarStyle">@style/LineRemover</item>
</style>
<style name="LineRemover" parent="android:Widget.Holo.ActionBar">
<item name="android:background">@android:color/transparent</item>
</style>
I guess you are aware that you have to register your theme in the android manifest (within your activity or application tags:
android:theme="@style/MyAppTheme" >