In January I wrote a post about customizing the header in Blogger blogs. The method worked okay but involved modifying the template.
I found out from phydeaux3 that Blogger has a new "Configure Header" widget and finally got to test it yesterday. The screenshot below is from my test blog.
Images upload okay but can't be resized or repositioned. I would have liked my test image centered horizontally.
It would be nice if images could be tiled, or moved, or a made to fit. At the very least the header widget should be given layout options like those used when uploading images to posts.
Freevlog has a video tutorial that shows how to use the widget.(via)