[SOLVED] header and favicon disappear when updating theme

I updated a very old version of atahualpa (maybe 3.7.6? not sure) but it was a version where the header images were stored in the theme file and therefore overwritten on update.

When I updated, I took advantage of the newer "Image Location" setting to put the favicon and the static header image into wp-content->ata-images and wp-content->ata-images->header, respectively.....yet the favicon nor header shows up! Menu is also missing but I think that's because there its not finding the %image.....

site is croninreadingroom.org
and header image is at
http://www.croninreadingroom.org/wp-...ader_sharp.png
and the header layout setting is
%bar1 %bar1 %page-center %bar2 %bar2 %image %bar1

Thanks in advance....