this is a new one for me as this was working A-ok on my last laptop but every since migrating to this new AMD e350 with the ATI 6130 I've been unable to use jpegs or pngs that don't have an alpha-channel as a background image in terminal.. I am assuming this has something to do with the transparency settings with terminal backgrounds but again this wasn't an issue on my last machine so I'm thinking it could also be a driver issue. the obvious solution is just to convert the jpg into a png and add an alpha-channel or do that with an existing PNG as it then works like a charm.