Hmm unfortunately I tried it at the top and it doesn't look good on this theme.
It just stretches the page considerably with the welcome username text shown completely below.
I think I will try to find an alternate theme where I could fit this logo in. This theme was built for banners/logos that are like 48 pixels high in size. As an example, even my own banner from 2007 didn't look good on it. (It didn't look super great on the other theme either, since it was made for when we used IPB back in 2007, although back then it did not have the strip of mtvmg cd pics at the bottom like in my signature)http://replay.web.archive.org/20080416002835/http://mtv-music-generator.com/
I guess maybe there could be a slim version of your banner, although I freaking love that Jester Music logo you got here, it's really awesome, so if the banner was like 600x100 I would still love that that part gets preserved. One idea I got is maybe have the text in the center with one of those Jester Music 1 logo on each side?