I was thinking of something like the following in the Configure Header Area box where the %logo is now. You of course have to use the proper atahualpa folder name.
HTML Code:
<div id="mylogo"><img class="alignleft" title="title" src="/wp-content/themes/atahualpa353/images/logo.jpg" />%logo</div>
and take out the logo name from the logo box. That should wrap float you logo to the left of the blog title and anything you put for title will show as the tooltip.