No matter what theme I use they all don't seem to change.. well I don't know what it is called so here is a screenshot(problem with the part underlined in red):
http://img206.imageshack.us/img206/1992/clipboard02yz8.jpg

Currently trying to use this theme:
http://www.litestep.net/upload/themes/Ultimatum_1.2_134680-1223.png
but its just not working so any help would be greatly appreciated.

Using Windows 2k and the version from the installer.

Sigh. That's the titlebar to your window, and LiteStep doesn't do anything to those. Never has. Probably never will.

LiteStep does not skin windows.

Look at windowblinds or a uxtheme patcher if you want to do that kind of stuff.

See also here:

http://www.litestep.net/index.php?section=4&action=view&catId=1&id=5665&hl=skin+windows