I lost my header and Google storage question~I'm HEADERLESS

Yes, I've lost my header photo.  I tried deleting it and putting up a new one yesterday and Picasa tells me I'm at my 1 MB limit and I have to purchase more storage!  WHAT???  I don't want to start deleting posts and photos, and it's only $5.00 for more storage, but it's the principle of the thing....(I'm STUBBORN...)...any ideas or suggestions?  What program do you use to store your photos?  I use Picasa/Google.  I only have it because I need some sort of program to crop/resize/lighten photos and I don't have Photoshop....any suggestions?  If not, when we get home, I'll just order the $5.00 storage from Google.