Header Image Disappeared

I am using the MagicBlue v.1.4 theme. I am using WP 2.7. Everything was working great until I changed the header image.

I am very savvy with computers and building websites. This is my second blog and I know about how to change the header image – make a new one, name it headerbg.jpg and overwrite the old one in the images folder.

I did this with magicblue 1.2 and the header disappeared. I uploaded the original header image, and it still was blank. I then deleted entire images directory and then uploaded my backups, and all images disappeared.

Next, i found v.1.4, uploaded this and changed the header and everything worked great. now when I was trying to change the header again (1 day later), the same problem came back and the header disappeared again.

Do you have any idea what could be causing this? Please help me out here.

My website with header missing: cmareno

My website with header attached and working: machampion

Note: this problem happened initially before i made any changes or customizations to either website.

J. Ryan