I searched for that .icon= reference but couldnt find it, however, I added the IconsDir "path" line to my step.rc and that did the trick, after that it came back with errors on helpdir and popupsdir, and after adding those to my step.rc all the errors dissapeared.

In case anyone runs into this problem, heres the lines i added to step.rc:

IconsDir "C:\LiteStep\themes\Ghost\Icons"
HelpDir "C:\LiteStep\"
Popupsdir "C:\LiteStep\"

I'm not sure if I'm missing any features by not specifying the Help and Popupsdir, I couldnt find these directories but the theme seems to be fully working now. I dont have to go through 30+ errors on every system start or theme switch now!

Thanks for taking the time to help guys, really appreciate it =)