Maybe your graphics card doesn't support textures that are not to the power of 2? All recent graphics cards support odd sized textures (for example the background images in the tutorial are 1024x768). Laptops of a few years back had trouble with odd sized textures and would show displays similar to the screenshot you posted.
You could try rescaling the images to be a power of 2, for example change the 1024x768 to 1024x1024 and see if the graphics are displayed correctly (although they will be the wrong size of course). You can then adjust the size of the sprites to take into account the new texture size.
If you need any help getting it up and running with the new sizes of textures give me a shout - ravey@thegamecreators.com
Regards,
Dave Milton
ravey@thegamecreators.com