SpywareDr- I tried what you had suggested and rebooted but still no luck

Igbpop- I have never installed a videocard driver i have had windows xp since I bought it a couple years ago, but the icons did use to be transparent for all my backgrounds, i just used that one in the picture to see the black boxes.

Tugenuf- I changed the theme from My theme modified to Windows XP and still no luck

I went back and checked all the things that work for everyone but me and they are all still how they are suppose to be. Thanks for the help please keep it coming if anyone has any other suggestions