Header image blocked by header-img.php

I have searched support for an answer to this issue to no resolve. I have customized about 7 WP installs and have never had this issue before until the latest download 2 days ago of WP 2.04. It appears that when I change the header image in the default them either by making a new image and renaming and then changing my css or if I simply create the new image and name it kubrickheader.jpg (the default header image) I can see the new image BUT it is covered over by the jpg that is created in /images/header-img.php. I then tried to delete header-img.php but that then removes any header image I upload. Is there a work-around anyone has that will stop header-img.php from creating the 2 layer color image so that my actual newly uploaded header image will show without being blocked by the header-img created by the header-img.php file?