Well.. You pointed me the right direction with the mthumb.php

This is an image resizing tool. and in there is a background color option or transparent pass thru. I just changed it from white to black and voila.. fixed.

It was FFFFF and I changed it to OaOaOa... I am not sure why it was not taking the background from the CSS file.. but it is what it is.

Code:
if (!defined('DEFAULT_CC')) {
	/**
	 * Default canvas colour. Allows override in mthumb-config.php
	 */
	define('DEFAULT_CC', '0a0a0a');
}
I did do the override in the config as it said.. I just cut and pasted it from what I was working on.