I drained my Automatic Transmission fluid and refilled with Honda ATF... After starting it, going thru all the gears and rechecking the fluid level it was low...I ended up putting four quarts in....When I checked it later the fluid was above the high mark...I assume between 1/4 and 1/2 of a quart too much. Can this damage the tranny? Should I drain some of it out? Please help, I dont want to do any damage!!!

Yes, it can. The gears aren't meant to ride too deep in the fluid & it will cause it to foam & loose the lubrication quality by adding air,

Are you checking the fluid on level ground? Is the fluid up to operating temperature? I assume you are following the manual on how to check the fluid level? It starts on page 263.