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Hey, i managed to get a background image to show in a marquee module block, I also tried it in a custom block but i couldnt get it to work, i think it might be because the custom block doesnt have its own seperate template, im not sure though.
Heres the exact code i used in the marquee block:
<table width="400" height="125" border="0" cellpadding="0" cellspacing="0"><tr>
<td background="http://mjtkop.com/home/uploads/img444cee41bdf8b.gif"><{$block.marqueecode}></td>
</tr>
</table>
I basically just added the background bit after the <td tag, maybe if you tried putting your block content inside table tags it will work, i am not sure though.
You can see the image working
here scroll down to the scrolling marquee block thats says 'Visionary Lyrics'.
Michael Jackson = King Of Pop
Xoops = King Of CMS