Panorama - A very cool theme but would like to incorporate Custom Header

I found this really cool WP Theme [] and it works really well with WPMU, however, it would be awesome to be able to add a Custom Header to it. I followed the directions on how to create changeable custom headers for wordpress mu here[] however, I got it to partially work in that I was able to load a custom header, but it placed it at the top of the page instead of where the theme actually places the header banner. i posted the functions.php code to [] for anyone interested in helping me solve this problem. I added the custom image header code in red at the bottom of the document. Like I said, it kind of worked, but not really. This is what it it looks like currently [] -- yikes