Is it possible to make %image clickable to point to root of site?

Gleb

Yes, see A. Theme Options -> Header Image

Thanks bunch - was struggling for options in the previous settings

Also - is it possible to overlay '%logo' content on top of '%image' content to save space, instead of them being one after another?

That would be awesome...

Gleb

Only manually at this point. You CAN overlay blog title and tagline and wrap them in a styled div container at A. Theme Options -> Header Image

To overlay the logo see http://forum.bytesforall.com/showthread.php?t=190 post #4

Thanks!

would be nice to have a way to reposition %logo (relative, -100px, or something).
Search box and RSS feed buttons would overlay so nicely over faded image.

I tried CSS way but i leaves white gap. Absolute positioning got ugly in my tests.

Gleb

Make sure you put whatever you want to overlay into the div "header-image-container" as shown in post 4 in that thread.

You can use float left/right with margin/padding, including negative values, or position: absolute (and no float)

It seems to be working if you look at the site referenced in that thread

I'd rather not hack .PHP files to keep myself upgradable.

Seems I got pretty close to what I want by doing only this:
Header->Logo Area styling:

position: absolute;
top:50px;
padding-right:50px;
padding-left:50px;

If I just could make diff browsers to show it identically...