6.5 Theme Issue, Please Help!

[KBZL]

I have been racking my brain for an hour. I am trying to do one simple thing and it is just not working. All i want to do is replace the wallpaper image in the Flamerise.tsk that comes in Calks Kitchens. Everytime i do, it creates the grey top and bottom bar. Let me tell you what steps i am doing.

First here is some background.
I am just trying to change the wallpaper within the 6.5 flamerise.tsk not the 6.5.1( I already know how to fix the grey in those).
I am using wince cab manager to open the tsk. I made sure that the image i am using to replace the current one is 480x640 and in jpg format. I made sure to rename the jpg to: stwater_480_640.jpg. In wince I right click on the image i am wanting to replace and click remove. I then right click on the 'files' subfolder and click 'add', locate my new picture and add it. I then just save and move back to the original location where the tsk was. Now understand, before i did any off this, the flamerise tsk worked just fine, had black top and bottom bars. I cannot figure out for the life of me why just changing the wallpaper to something else, it creates the grey top and bottom bars.

PLEASE HELP!!! Im gonna pull my hair out.