Ok I double checked what you said except I changed all the file names to the emulator names, just so I know what goes to what, I then put all the .mll files into one folder with sub folders named after the .mll file and Its matching artwork which has been named after the last two files and still no luck.
Maybe this will help diagnose the problem. Still no matter what I do when I click the emulator box the list of layouts go gray. When I exit after this the screen just go black for each emulator. The emu/games list are still in the right place according to the layout just no background or the standard background I can't seem to delete.