Ok, so that was the only problem I had. I went to the module manager, disabled the Joomla Login module and enabled the K2 login module, then everything was set up properly. However, I have a couple of new questions.
1. Can I change the text of the Logout link? When you click the link that says Logout, a mini-window opens containing several account options, plus a log out button. Since the link actually does more than log the user out, I was wondering if it is possible to somehow change the text of that link to say Account Options or something similar.
and/or
2. Can I add a "close" link to that mini-window? When I am logged into an account with font end editing privileges, and I click the Logout link to open the mini-window, then select the Add and Item link, the K2 item submit page opens in a lightbox fashion, and this mini-window remains hovering over the top (see attached images). I can not close the mini-window or move it to a position where it is not obstructing the view of the submit page. How can I fix this problem?