(Thanks to lmilesw for this tip)
Due to the way the fade in/out jscript code works, the blog title and tag line will disappear almost immediately. But here is a trick to keep the blog title over the header image. The way it is done is give the 'wrapper' a 'position: relative;' then use the %logo and position it.
1) Normally to cause the blog title to overlay the header image you go to ATO->Header Image->Overlay Blog TITLE over Header Image(s)? and set it to YES. (same thing for the tabline). In this case set it to 'NO'
2) Go to 'ATO->Style & edit HEADER AREA->Configure Header Area', enter '%logo' right before %image.
3) go to 'ATO->Style & edit HEADER AREA->Show Logo Image?' and blank it out.
4) go to 'ATO->Style & edit HEADER AREA->Show Blog Title?' and set it to yes.
5) go to 'ATO->Style & edit HEADER AREA->Show Blog Tagline?' and set it to yes.
6) finally add the following to ATO->Add HTML/CSS Inserts->CSS Inserts
HTML Code:
#wrapper {position: relative;} table#logoarea { border-spacing: 0; left: 30px; position: absolute; top: 34px; width: 100%; z-index: 99; }
And that's it! - Don't forget to thank Larry if you use this.