Its amazing what you can find on Google! I typed in "why is my blog banner blurry" and ended up finding a blog with great instructions for fixing my blurry header.
http://www.southernspeakers.net/2011/01/blogger-header-image-sizeblur-fix.html
The instructions tell you to host your image on an image hosting web site, which did indeed do the trick. However, Blogger wouldn't even recognize the image link when I tried hosting the image on Flickr and Picassa kept on forcing my image to be smaller that I wanted it to be. I ended up using Imageshack as suggested by Southern Speakers. Worked like a charm! After hours of struggling to fix the *(@#$)! problem. Thank you Southern Speakers!
