Header problem following auto upgrade to 3.7.12

Hi
I am getting the following fault message immediately above where the header should be in www.cleatormoor-tc.org.uk

/home/sites/cleatormoor-tc.org.uk/public_html/wp-content/ata-images/header/ - wp-content
the folder permission or path to your header image folder is incorrect.

permissions for the jpg was auto set to 644, I have tried 755 & 777 but still get the same error message

I have a single jpg in: /public_html/wp-content/ata-images/header/compilation1240.jpg

I renamed the jpg and removed some underscores to try to make it appear.
I change ATA them to WP2012 and back again.

ATA options 'image locations' are Relative location is wp-content and image directory is ata-images; I altered ata-images to header but get a similar error message:
/home/sites/cleatormoor-tc.org.uk/public_html/wp-content/header/header/ - wp-content
the folder permission or path to your header image folder is incorrect.

The following folder is empty: public_html/wp-content/themes/atahualpa/images/header

I also failed to read the advice about manual updating to the latest version !!

I cannot find an answer in the forum to this problem; albeit a number of similar occurances have been discussed.

I would welcome any advice please.

N.B

I do not have a caching plugin and I have cleared my FFox browser recent history, problem also shows in chrome & IE