Multiple Theme And Plugin Problems

I am attempting to set up an ETSY style site and have all kinds of problems in spite of trying to follow instructions to the letter. http://celticjewelrydesigners.com/

The point I'm at is I have uploaded Wordpress and enabled Plugins Marketpress, Multisite Theme Manager, New Blog Templates and WPMU Dev Dashboard and themes Framemarket and Grid Market. Have also set up a shop template http://celticjewelrydesigners.com/templatesite/

The most immediate problem is that I am not able to upload a new header. I go through the process but it doesn't change.

Next problem - when I go back to marketpress to see if it's still set up, under "edit" I get this error message: Fatal error: Out of memory (allocated 33554432) (tried to allocate 20 bytes) in /homepages/30/d343166253/htdocs/celticjewelrydesigners/wp-admin/includes/misc.php on line 316

I have discussed on another string a bit about the arrangement of folders in my root, which seems a bit odd. I'm not sure if they may be the root of the problem (yes - pun intended). Adding several illustrations here. Note: I was advised on a string here to put the content, admin and includes folders into the public.html folder - but when I did that the site front and back ends both generated nothing but error messages. Help!