Both screenshots show Windows 7. Anyway, there's an issue with the "show desktop" button on the classic theme. It should work fine with the modern theme.
I don't know why it doesn't work properly for you. I've just checked, and it works fine for me on Windows 7.
How is your question related to the tweaker?
Do you see it?
Why is that?
I don't know how it is called. I've customized but it based on the regular of W7.
http://3.bp.blogspot.com/-zqGiJCBubZI/Td51yumWL_I/...
This is modern/aero theme:
http://4.bp.blogspot.com/--VAFXW8L0IA/Td51yN6qm0I/...
http://rammichael.com/7-taskbar-tweaker/comment-pa...
Anyway, there's an issue with the "show desktop" button on the classic theme.
It should work fine with the modern theme.
I don't know why it doesn't work properly for you. I've just checked, and it works fine for me on Windows 7.
I hoped it would fix also my modern/aero theme, but no,
The new advanced option: w7_show_desktop_classic_corner
didn't fix my problem.
If it doesn't work for you, you must have another issue. Perhaps a conflicting program.
Seems like a bug of Windows or explorer. The issues happens without the tweaker as well.