I'm in a rush, and about to go out, but off the top of my head:

This setting doesn't do anything to a hooked xTaskbar (or labels):

xTaskbarCustomAlphaFade 10 10

This setting has to go. You can't use alphamap images with a hooked xTaskbar (or labels):

xTaskbarAlphaMap TRUE

You're also defining a lot of settings that are already default. For example: xTaskbarFontOutline FALSE. It's false by default.