TLB 4.2 & Vista - Still Problems

I just installed Vista recently and was using 4.1.7 RC and seeing issues, but figured they would be worked out when a final was released. I just dloaded the 4.2 final and I'm still having the same issues. I don't even know how to explain them, but I'll try:
When I right-click on the taskbar and turn off QuickLaunch and turn on TrueLaunchBar everything works fine, however when I create a folder and try to use it, explorer stops responding and I have to restart it, which then defaults back to QLB. Please see screenshots below as I don't know how else to explain it.

Shown below, you can see I've moused over the folder 'Internet' I created:


Here I've clicked on the folder. Note the darker 'pushed in' look:


Here I've moved the mouse around the other icons and you can see they're all 'pushed in' now even though I haven't clicked them. Note I can't click on the Start Button now either:


Finally, the familiar screen I'm used to seeing:


If I click "View Details" I get the following if it helps:

Problem signature:
Problem Event Name: APPCRASH
Application Name: explorer.exe
Application Version: 6.0.6000.16386
Application Timestamp: 4549b091
Fault Module Name: ntdll.dll
Fault Module Version: 6.0.6000.16386
Fault Module Timestamp: 4549bdc9
Exception Code: c00000fd
Exception Offset: 00061546
OS Version: 6.0.6000.2.0.0.256.6
Locale ID: 1033

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I suppose you'll want specs to work with, so here is what I am using:

System: Microsoft Windows Vista Business Edition (32 Bit)
Processor: AMD Athlon™ 64 X2 Dual Core Processor 3800+ 2.00 GHz
Memory (RAM): 1023 MB
System type: 32-bit Operating System

Please provide suggestions if possible. I can't live w/out TLB and I don't want to uninstall Vista and go back to XP either.

Thanks for any assistance you can provide.

-Dave

edit:

I just turned off Themes to test and it works with no issues. I'd really like to use Vista's theme however, so let me know if there's anything I can do.