As for image coming back after you upload an image it is not actually saved. You have to click save at the bottom of the page.
I did click save before navigating away from the page.
On the admin panel, the picture scales to the right dimensions except when youre in the main page, the image doesn not scale but rather zooms in.
Try changing the image class setting to cover. That should give a better result also using an image that is too large isn't really a good idea, I think the ideal size was 400x250.
@baris Ah that fixed it as long as its not too large. Thanks for the tip!