@gurtvh, thank you for this, much appreciated. In the end I decided to use a different theme, but this information is useful for future reference or anyone else frustrated by the lack of a logo option in WP default themes.
The free version of this plugin does not work for me at all since I upgraded to 3.8. While the plugin developer deserves to be paid for his time and effort but simply taking away most of the free features and charging for it, is beyond sneaky. I am keeping with the 3.7 version until I find a new alternative. I would not upgrade to the free 3.8 version if I was you.