For example, at the moment my page is the standard blue and white, but is there a way I can put a picture of cupcakes or something in the Blog Title? I want to hook my page up so it looks really cool but after clicking around for awhile I haven't found a way to do so. I'm confused.

You can choose a different theme by going to the Presentations tab in your admin panel. Unfortunately, though, you can't customize it with your own header images.