Header image and widget image

First, I just have to say how thankful I am for this theme - finally some customization for idiots like me that can't figure everything out!

My questions: I have tried my hardest to resize some images for the header and gotten them to load, but the "zoom" is completely off from the original cropped image I have loaded. As in, I resize the image to 200 x 900 pixels, and it looks fine and dandy, but then when I view the page, all I can see is one tiny little spot of the cropped image. Am I missing something with resolution??

Second: How can I get a photo onto my widget sidebar? I've tried linking to one using the text box, but maybe I'm forgetting something, because it won't show up.