This is a strange thing.
First image: Single hight taskbar on the top of the screen
Second: Double hight on top (is how it should look)
Third: Single hight on bottom (how it should look on the top)

The quicklaunch goes behind the startbutton and the gray button under the resizing grips (also behind the startbutton) is as far as I can tell the normal state image for the push buttons!
When I pull the taskbar down to double hight, everything pops into place.
I assumed it was something wrong with my skin untill I tried a couple of others. The isssue happens with several other skins that I tested (stardust by stardock design to name one)
My system info:
Your computer has a Windows Experience Index base score of 4.8
Your Windows Graphics Experience score is 4.8
WindowBlinds version : WindowBlinds 7.0 (build 176 x86 - Vista Edition)
WindowBlinds is installed correctly on this PC
WindowBlinds appears to be activated on this PC
(Generic PnP Monitor) 1 is attached to NVIDIA GeForce 8600M GT
Wblind.dll 2009/06/25 17:39:20
Wbsrv.dll 2009/06/25 17:39:33
Wbconfig.exe 2009/06/17 22:52:02
Wbload.exe 2009/06/02 20:39:14
Wbhelp.dll 2007/08/27 12:54:07
Tray.dll 2007/09/12 18:58:21
Wbload.dll 2009/03/17 15:36:28
Screen.exe 2009/06/04 18:48:09
Note: This issue has been confirmed on WB 6 as well