basically thats a mistake on my part...
no shortcuts with spaces in their paths are currently accepted.
the solution is simple and here it is... considering u are new to litestep... i will explain it line by line. :)

Open the file "theme.rc" located inside teh "ExaciburII" theme folder whereever u have installed it. Open it in notepad. It will be genreally inside "C:\Documents and Settings\User\Application Data\LiteStep\" or if u chose some other location during installation.
Search for the following lines ::

LabelCustomOneOnLeftClick $CustomOneCommand$

and replace it with this ::

LabelCustomOneOnLeftClick "$CustomOneCommand$"

do the same for LabelCustomTwoLeftClick... and so on.
now reconfigure the shortcuts. by right clicking on them.
this should solve the problem.

as for making teh windows change.... u can use windowblinds.download it from stardock.com... or just search...