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I did the same thing. This is what I had to do: in the template.css I changed the background code:
html body {
background: url(../images/backgrounds/body-bgd.jpg) fixed center no-repeat;
}
The above code fixes the background in place which can be a cool affect when pages scroll and the background doesn't.
And in the template manager under the Styles tab I changed the Background Color setting to transparent.
Hopefully by now you've solved this but for anyone else here it is.
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The following users have thanked you: Rade