I found a little way to make it work…
1st I deleted all images from wp-content/upload/12 (12 was just the folder all my header images I uploaded were stored, probably not the same on your system)
then I added this to the header.php
<img src=”http://earndollarsnotpennies.com/wp-content/themes/blogolife/images/header.png”>
right under:
<header id=”branding”>
<hgroup class=”fleft”>
http://www.earndollarsnotpennies.com (sorry still work in progress, but wanted to share that there is a way to get rid of that white space)
Sincerely
Carola
