zargon, when attempting to apply aero midnight via theme manger, everything is applied except for the windowblinds skin. well, let me put it this way: the wallpaper and the icons changed. the windowblinds skin was not applied and the desktop gadgets failed to appear.
What happens if you go to the Applications tab, click on skins and apply Aero midnight through that mechanism.
Do you have WindowBlinds installed or just MyColors?