Since I got it figured out before, I decided to upgrade to 1.3.8 and just did a frest install since I hadn't gotten very far.
Now I am having a weird problem. I named my logo header.jpg and uploaded it to my e-mail folder to replace the zencart logo called header.jpg.
My logo shows up in my admin control panel under tools/e-mail welcome, but when I create a test customer, the logo in the e-mail that is received is the zencart logo. So I don't get it.
I tried gezuvor's suggestion, putting the / before e-mail/header.jpg, but it doesn't work for me.
I reamed my logo banner.jpg and changed the reference in the welcome e-mail to that. It now works, but it also means in all of the e-mails where I want this logo to show up, I'll need to change all logo.jpg to header.jpg.