I don't know why they moved my issue. I mention I had updated Expound, but after the WP install, the problem persisted with both installations:
So I tried being brief in the description, but this is a specific problem that I'm getting really frustrated with. I've updated WP to 3.6.1, the custom header image for whatever reason now adds an additional "http://" to the <img> tag, resulting in the picture not being found. I'm using wp's media library to add it, and it just creates a copy then repeats the same URL issue.