Darn I don't know whey they are not there.
They are there when I click on the Picture Icon effect in the sequence.
I'm now convinced it is NOT a xLights issue, its how I made the picture files.
I created them as Transparent in Photoshop as a .png file.
Then pointed the Picture effect to then in a folder.
I will try and figure out what I'm doing wrong.
Sorry to take up your time.
Just don't know whey the Program Zip does not see them.
No more for you to do at this time.
But for grins I put one of the Picture effects .png file into the same folder as the .XML file and attached the Zip.
again, thanks I have more work to do here.