Judging by that screenshot (or rather, the dimensions of it) you're running the layout in 1280x1024, which is a 5:4 ratio.
The layout is designed for 4:3 hence the misalignment between the location of the screen elements and the background image.
Change your display resolution to 1280x960 and it should work. If you're using an LCD and that makes it look terrible, you probably need to modify the layout either to stretch it to 1280x1024 (which will wreck it a bit, imho) or modify the layout image to use a letterbox.
As I said, easiest to just tell MaLa to run in 1280x960.