Fumbling around, I was editing the header.php sub template and managed to get the logo where I want it, but after the logo it looks like a line break and the title text starts underneath. http://www.flaxpond.net/soundadvent to see what I mean if thats not clear.
Here is the current state of the code with my img tag in there.
Code:
<div id="banner-bg" class="cf"> <div id="banner" class="row"> <div id="logo-area" class="col5"> <<?php bfa_if_front_else( 'h1', 'h3' ); ?> id="sitetitle"> <img src="http://flaxpond.net/soundadvent/wp-content/uploads/2012/10/SA-sitelogo.png" ><a href="<?php echo home_url(); ?>"><?php bloginfo( 'name' ); ?></a> </<?php bfa_if_front_else( 'h1', 'h3' ); ?>> <p id="tagline"><?php bloginfo( 'description' ); ?></p> </div>