I experienced the same problem and I read through all of your comments to try and find an answer. Finally I decided to take my logo back into photoshop and change it from CMYK to RGB and it worked! I had already downsized it to 100 pixels wide so I'm not sure if it would have worked at 200 wide as well, but once I got rid of that red X and actually got my logo to appear, I didn't want to remove it and risk not getting it to work again. Hope this helps!
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