Are you using the MENU BACKGROUND for the grouped menu background? The grouped menu doesn't support translucency. You have to make a different menu for that just like you did with the favorites menu.
You got a slightly older version Craig...I used the MORE PROGRAMS menu for the GROUPED menu.....I'm seeing 2 menus...the favs around the edge
The version Ihave, you have changed that from 255 to 163.
I switched it back and forth...sometimes it 'resets' a tga's translucency.(again,I HATE .tga's,twice the size of a .png and less reliable)
I see several places in Windowblinds where the dont work right(not just this skin,ALL skins on all my pc's)...they tend to lose part of their translucency.
seeya Craig