I've had an email asking for more in-depth help on changing headers, so thought it's time I did a better tutorial.
My original header
 I want to change my original header - so first I need to remove it.

If you have a header already in the My Pictures folder on your computer, simply browse for it and upload it. If it's on an external site such as Photobucket, Flickr etc, then you need to enter the link for the image.
What buttons to press! Which does WHAT...
Here's how to find the Direct Link code in Photobucket

If you don't see your image straight away, here's what to do
 Wait until the image has loaded before you try to save it. If the image doesn't load immediately, scroll back to the beginning of the Direct Link code (use the Home button on your keyboard, or the arrow key) and you'll see Blogger's 'wait symbol' whirring around, and then the header image will load.

Just check you've clicked the right buttons (you don't want Blogger's own header writing over the top of your image if you've already done some text etc in your graphics programme)
 Once you are happy with the header you want to use, click 'Save'. Then go into your Dashboard to the Design section, then into Designer, Template Designer, Advanced - where you can adjust the fonts, colours and sizes as needed.

 If the text is too high, or too far over to one side, you need to adjust the placement. Here's my tutorial on how to do this.

If you already placed the text on your header using your graphics programme, then you usually don't need to adjust the placement as it should already be centered. Occasionally though, you might want to give it a little tweak...
Here's my changed header, with the minor adjustments in positioning. Which make a ton of difference! If I was doing this for real, I would naturally choose my colours and styling to fit the background better (or change the background to fit the blog header better).

I hope this helps!

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