I know about that bug with some types of icons getting messed up.
That's why I removed the folder icons, because they showed up the same way.
A possible workaround for this is to have atleast one app/game in the main menu.
To BenJeremy: Can you see why it is doing this?
I' using <Primary source="verified"> for each of the small thumbnails (those are actually 5-item menus with the rest of the stuff hidden behind the image) I'm using "verified" to get constant menu width so scaling works as expected, and thumbnails line up. However, in main menus, if there are no "items" present, this causes scaling to mess up. Going into a sub menu and back out to the main menu fixes it. Try looking at this "debug" skin
to get an idea of what's going on.