Thank you Ryuho for your help.
Thanks for trying to help xcal, I understand where you are coming from, but I'm with Ryuho, it helps to look at what someone else has done... an example I mean.

Now, in the documentation it says it works Exactly like Shortcut2, just take out the module load for it and set the variable for "xLabelUseShortcut2" and your set. Well, that is what I did and it didn't support png files. It should have a flag that can be inputted to render png's, but it doesn't.

I wasn't realizing that I would have to make a label for every shortcut I wanted just to get alphatransparency. Ack... What a drag. Maybe I'll just stick to Layercut, it works like a champ.

I'm just simply trying to update a theme I have to All of the Newest modules... But it seems that the "Shortcut" module still lacks as it has for quite some time. Honeslty, all I ask is a shortcut module that supports AlphaTransparency that's up to date.