I don't know, I'm shooting in the dark. I thought that perhaps you had made two different copies of the same layout file (by accident). Perhaps you have one of these in the Mala folder and another in a Mala subfolder. You could be using the layout editor to modify one layout file, but Mala could be using the other layout file.
You said you copied the background image to the Mala folder. That does not seem right because looking at your error message, it looks like your layout files are in this folder:
C:\Documents and Settings\CJB\Desktop\Mala\Zebra\layouts
One other thing that you are doing that I wouldn't recommend (even though it may not be causing a problem) is your Mala folder is actually on your desktop. I would move the Mala folder to C:\. As you can see instead of a path of:
C:\Mala\Zebra\layouts
you have:
C:\Documents and Settings\CJB\Desktop\Mala\Zebra\layouts
This can create problems for a *few* apps that do not expect that many subfolders. I'm not saying this is causing your problem, but generally you would only put a shortcut on your desktop instead of the actual folder.
Anyway, back to the topic: I would put a copy of the background image into your layouts folder which appears to be:
C:\Documents and Settings\CJB\Desktop\Mala\Zebra\layouts
If you haven't already, try copying the background image to:
...Mala\Zebra\layouts
Background images need to be in the same subfolder as your layout files. Somehow I get the feeling I am going to confuse you more regarding paths and folders, but anytime a folder is on your desktop, you can also browse to it via My Computer by going to
C:\Documents and Settings\CJB\Desktop