First off, are we talking about Final_Logo_and_Frame_Small.png the large logo picture?
"I inserted it via FTP": So you placed the image file onto your server, so far so good.
"at the top of home.php": I don't get this part, did you edit the home.php file to include this image? Or did this mean you placed the file above that .php file on your server, not editing any kind of text?
Home.php confuses me because when I pull up the source code of your page (command+option+U) there is no mention of this .php file. Also when I check the activity (shows what files are loaded for your webpage command+option+A) there is only a single HTML file loaded.
So long story short from my end everything is somewhat masked by the way Wordpress's file system works (or are you hosted somewhere else?) and I cannot see this home.php file
It needs to be placed in your index HTML file(I am not familiar with wordpress's file system, on my site it would be Index.html, all I can see from here for your site is
http://www.lifesweetened.com.html) after the line:
"<!-- Start Featured -->"
You will also need to determine which CSS style rules to use:
<div id="featured">
^^will be one I am almost certain. But it looks like you will have to play with it and see what works.