I took off vtraysettingscompatibility and changed the settings the reflect the following:
added line to step.rc - *vtrayLabelModuleHook !vtrayHook
systray.rc:
vTrayX 0
vTrayY 0
vTrayWidth 0
vTrayHeight 26
vTrayIconSize 16
vTrayIconSpacingX 6
vTrayIconSpacingY 0
vTrayDirection left
vTrayBitmap systemtray.png
vTrayBorderLeft 0
vTrayBorderRight 0
vTrayRememberIcons true
vTraySnap true
vTrayBordersize 5
vTrayBorderColor ffffff
vTrayBorderDrag true
vTrayAutoSize
vTrayOnAdd [!vtrayshowhide 30]

xlabel.rc:
*Label VtrayLabel
VtrayLabelLeftBorder 4
VtrayLabelRightBorder 4
VtrayLabelMoveable
VtrayLabelMoveModifierKey "ctrl"
vtraylabelimage "systemtray.png"
vtrayLabelX 0
vtraylabely 0
VTrayLabelAddToGroup "100"
VTrayLabelWidth "200"
VTrayLabelHeight "25"
*vtrayLabelModuleHook !vtrayHook

Sorry for all the trouble. I really don't know why this isn't working. It produces a bar in the upperleft of the screen, that's it. No icons are in it. Could you show me a sample config that works?

Thanks guys.

- Dave.