To stop the “Transitions” the Backdrop display is controlled by “Photo Settings”
Setup > Photo Settings > Slideshow Interval Time > 5 Minutes
Quote: “theme backdrop, plain black backdrop…then finally the movie backdrop”
Sounds like you messed up Thumbgen Settings
Check your generated movie xml … open it with notepad and scroll down to the bottom and you will see…
[example]
The Dark Knight Rises_sheet.jpg
This should be the 1st tag that loads after a few seconds (after the black screen)
Watch Tinwarbles Video Demo on Youtube for an idea of what should be happening