Autozone Theme Main Menu Not Displaying

I have installed, activated, and in the process of updating the theme configurations but the main menu background is not being displayed. Can you offer any suggestions.

Also when I try to reset the theme to default I end up at the root of my development directory instead of the root of my WP install. Why is this and what setting do you suggest I update to correct this issue.

My site is at http://rcsdemo2.com/tudor2/.

Nevermind... I see my custom logo needs to be a different size.