Logo issue on SharePoint Server 2007

I am using SharePoint Server 2007 x64 and Windows Server 2008 x64. I'm trying to change the logo on my SharePoint Server 2007. I had even setup a site with template publishing portal. As i was trying to change my logo, i tried to replace top.jpg with my image but for some reason my image stretch to much. I want to change site logo image, I am using the following method, but has no effect. So, can any one tell me that how do i resolve logo issue on SharePoint Server 2007? Any ideas what is wrong?Kindly provide me the correct solution for the above issue. Thanks.

I tried to the following steps, by going to me Site Settings, where i had selected Modify All Site Settings and then had clicked on Title, description and finally had clicked on icon. I had tried to change the URL in "Logo URL and Description", but that didn't work for me.

If I use the logo.png file it is too big and the color changes from the original background. The one I have on there now is the one I want, but it covers up the colored table. Make sure that the path to the new logo is correct. It can be absolute or relative to the existing site e.g. "/_layouts/images/titlegraphic.gif". If relative, don't forget the leading / (forward slash)

You need to use the "Click here to test" link in order to verify that you can browse to the image. If you are using FLC it has its own home.tpl and head.tpl which you also have to edit. If the site admin sees the new logo on the site, but anonymous users do not, it would indicate permission issues.