Let's see...
Quote: "load bitmap "background.jpg", 0"
loads that image and sets it as the background.
Quote: "load image "srallycarstraight24.bmp", 2
load image "paddle.jpg", 3"
those load srallycarstraight24.bmp as image number 2 , and paddle.jpg as image number 3
Quote: "set current bitmap 0"
sets bitmap 0(screen) as the viewable bitmap.
Quote: "get image 2,0,0,96,96"
grabs an 97x97 image from the current bitmap and saves as image number 2, thus overwriting the previus loading secuence of srallycarstraight24.bmp.
Quote: "sprite 2,2,2,2"
sets up a sprite as number 2, in x=2 and y=2, and image number 2, wich is somewhat the background.
So far, i think you'll see the background, and on the upper left corner and image of the background, but as its just 2 pixel lower and to the right, its hard to notice it. OH, and the blue screen is because of the sprite, since from some version of Db, sprites are treated like 3d objects. Im not really sure what your aiming to, so cannot help that much.