Thanks for the suggestion. In home.php the image is referenced, with no img size tags. I placed hard img size tags in there and when view it stays the original xcart image size, so my edits are overwritten somewhere. I even hosted the image elsewhere, named it differently and directly referred to it, and same thing. You can see it here:
http://www.lastarstyle.co.uk/home.php?shopkey=123
Thanks to all.