Must admit that I did get into the problems with Image Magik. No idea what was causing them, but a change of ISP to one who with experience of hosting Photopost resolved all the issues. In fact the hosting company have been excellent. Very helpful and not a single problem. Just in case anyone is interested they are www.odsol.com
O.K. back to the header. I'm sure I had the right path as for a test I copied the path into the footer box and it displayed as the footer successfully. To be more exact with what I am doing the sub directory is on a different server to the main site, so this may be the problem.
It is not really an issue for me. It seems a minor point and it happened because I was doing something different to most people.
I would also like to say that for the price I am delighted with Photopost so far.