I'm not too sure about the graphics part, but I have noticed the definition replacement is wrong, it should be:
xml code:
<Windows>
>>><Definitions><<<
>>><Definition Id="1001"><<<
<File>1001.txt</File>
</Definition>
>>></Definitions><<<
</Windows>
EDIT: And the MsgVersion tag up the top should not be spelt with two g's...
EDIT2: Also, you must put in "Graphics" tags before and after the Pictures tags. Always.
Spelling and syntax is vitally important when developing any kind of software (Plus! Skins are quite a way away from being software, but you get what I mean).
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