help changing header

Both can be resolved by going into your Admin panel for WordPress.
As for categories, did you add them through the panel or do it manually?

Header Images: https://www.tamba2.org.uk/graphicalcss

Jinsan,
I added them through the site and tried adding one through the admin panel…I need to know where I set the number of catagories in the blog-header.php? Thanks

By default, new categories won’t show up until you post to them. If you’re using WP 1.2, change this line in your index.php to show the empty categories as well.
In line 71
<?php wp_list_cats(); ?>
to
`<?php wp_list_cats(‘hide_empty=0’); ?>