Yes I saw the problem last night but thought that there must be a way around it.
Anyway, I seem to recall this issue being raised before - and here it is....
http://www.basic4ppc.com/forum/showt...hlight=overlap
Hopefully this will solve your problem although it looks like it is a little convoluted.
Basically I think that the idea is to draw the image and store its position. Then redraw in a new position, repaint the background using the stored (last position values) and store the new position again etc.
I noticed that you were redrawing all three icons each time. Ideally you only want to redraw the items that have changed. This will significantly improve the speed of operation as only small changes will be being made each cycle.
Regards,
RandomCoder