As you can see from the screenshot that I have finally managed to get a transparent conky background. Here is the script in my ~/bin directory
=====filename:conky_background.sh========
x=`sed 's/.*">\(.*\)<.*/\1/' /home/alind/.config/rox.sourceforge.net/ROX-Filer/pb_Default |grep '[.jpg|.png|.bmp]$'`
echo $x
sleep 20
feh --bg-scale $x
=============
And add the following line to .fvwm-crsytal start up file
+ I Test (x /home/alind/bin/conky_background.sh) Exec pidof /home/alind/bin/conky_background.sh || exec /home/alind/bin/conky_background.sh
Only problem is that if u change background during a current session then u have to run once conky_background.sh from command line. Else it will automatically load the new wallpaper during next startup of fvwm. I will try to automate this also. The reasons for non-transparent background of conky was some fighting b/w conky, rox-filer to draw on root-window. This makes them both draw the same pic and what u get is the illusion of transparency.
cheers!