This doesn’t seem like a CSS issue, based on looking at the question, but if you had added some incorrect CSS or copy and pasted the original theme’s CSS without adjusting the url() values then you could have inadvertently broken the Appearance → Header function.
If you are new to CSS, the best way to add new CSS is to select the “Add my CSS” option on the Appearance → Custom Design → CSS page and then just add in small CSS snippets for changes you want to make that are different from the original stylesheet. You would just want to use the original stylesheet as a reference and not copy and paste the entire thing into the CSS editor.
I checked http://infinera.wordpress.com/ and it appears your custom header image is working and it matches what has been selected on the Appearance → Header page. If you still need help, please describe how the image looks to you compared to how you expect it to look.
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