There's a bunch of folks out there with Winterboard issues like no theme being applied or no transparent dock. I solved my problems and though I'd share what worked for me. Your mileage may vary. What fixed it for me was a little strange, but it works. My original iTouch 1G jailbreak was done using quickpwn, because that's all there was at the time. I noticed that when I ran the quickpwn-installed Cydia for some reason it was installing an older version (0.9.2796-1) of Winterboard which did exactly as you describe. I couldn't seem to get Cydia to install the latest version (0.92931-1 at the time) no matter what. A quick search showed others with the same issue. I tried multiple restores and firmware rebuilds and nothing helped. So, when redsn0w came out, I reverted back to "stock" 3.0, did the redsn0w jailbreak and Cydia then installed a more recent Winterboard . Everything's good now. I noticed some speculation that Icy may be the culprit here (install option with quickpwn, but not redsn0w), but I can't say for sure. In any case, Winterboard is now back to normal which is what I care about. If there's any new posts on the subject, I'd suggest being a little more specific about 1G versus 2G and jailbreak method.