Ok I got it to work. It would be helpful to newbies reading this to tell them they do NOT need to edit the header.php file. I read through this thread and thought that both steps were needed. All you need to do is edit the js.php file, put more than one image in your images/header directory, and set the number of seconds in you want to rotate them in the Ata theme options.

This is great you guys. Thanks!

I'm closing this thread - the explaination has been moved to 'HOWTO: create fading header images ' (http://forum.bytesforall.com/showthread.php?t=6921)