changing logo in anthology theme

I followed instructions in anthology support documentation but the logo change doesn’t actually implement.

Steps I took: I used the logo.psd file and changed the text to what i wanted. Then I go to Appearance >> Anthology Options >> Style Settings >> logo image and upload my file. Then I click save changes at bottom of page. Nothing changes.

I’ve tried saving using the same file name, a different file name, saving it as .psd, .png, and .jpg and nothing works. All I can think of now is that I have it in the wrong folder. I’ve tried putting it anthology-premium-elegant-wordpress-theme>>photoshop_files. Ive tried unzipping Anthology 1.3 and putting it in Anthology 1.3 >> Images.

None of these works. I am using photoshop cs3. Could that be the problem?