First, make sure your image does not include any unusual characters (for example, underscores, dashes or symbols). If it does, change the file name.
In your administration panel, go to Themes and select the active theme by clicking on the active theme title.
Next, either hover over the image on the right over your header and click Edit Header, or, on the left, under the tabs General Settings, Display, click on Edit Header
Click on the image upload button.
A new window will pop up. Under the Upload tab, click 'choose file', select your image and then send your image to the server.
Use the other tabs to adjust the image as it is seen on the website, including the image size.
Once you have done this, press OK and check how it looks in the header editor. Then press Apply and Close and on the left click Save Theme Settings..
In your administration panel, go to Themes and select the active theme by clicking on the active theme title.
Next, either hover over the image on the right over your header and click Edit Header, or, on the left, under the tabs General Settings, Display, click on Edit Header
Click on the image upload button.
A new window will pop up. Under the Upload tab, click 'choose file', select your image and then send your image to the server.
Use the other tabs to adjust the image as it is seen on the website, including the image size.
Once you have done this, press OK and check how it looks in the header editor. Then press Apply and Close and on the left click Save Theme Settings..