Header image zooms in

I updated the theme and lost the header image. I have reloaded but it appears as zoomed in detail. I have reloaded (it is exact size as recomended) and reset but still appears as cropped close up.
I have seen the post about adding an image as a logo – however if I do that I loose the Name and title of the site. Any ideas?

I’d be happy using the logo option if I could retain the text as well.
I am using Chrome and Firefox