Hi Kristi,
Apologies - I had thought you were using the new Transparent Bliss and my instructions were for that.
Polar Bear and Black Bear don't have a logo file - you need to open head-bear.png in an image editor and drop your logo into it. You'll need an image editor such as Gimp (free)
http://www.gimp.org/ or Photoshop/Fireworks will do it.
You can find head-bear.png on your site here:
http://www.may17oslo.com/templates/polar...images/
head-bear.png
Once you have placed your logo in the file you need to resave it and upload to the same place i.e. /templates/polarbear/images/head-bear.png
If you are still having trouble send me an amail and I'll sort you out.