Your image is 1000px by 1276px.
I’m not sure how your re-sizing it, but you should re-size it to something like 1000px wide by 150px height, or another height you want.
Re-sizing within the media area of WordPress is ok, but with an image that size your better to re-size it on your computer before using the media uploader.
All those huge images get stored in the uploads folder even if their not used.
You can use a free online re-sizer if you don’t have an image edit program. (http://www.picresize.com/ is just one example)
Thanks, David, but I did re-size smaller in photoshop but no matter what size i indicated it still ended up gigantic.
Here’s likely what’s happening.
You initially uploaded the header image, then you re-sized it somehow but your not selecting the new re-sized image or it’s still in the cache.
Here’s what I would do.
Clear the browser cache.
Still the same?
If so, delete the header image from the media library.
Upload the header again, but this time at the correct size.
Now set your header again using the new header image url (or using the select header image button), and now the new header image will be used.