It's not Picasa:
Must be a Blogger glitch.
Blogger doesn't recognize this semi-transparent with round edges in the Header either:
Header Preview is correct, but once I View Blog, it's incorrect. What's really strange is the transparency works on my test blog, but not on this blog. Same image, same template.
I give up. Went back to regular Header text because my Header image is ugly with a white background.
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