There are two errors in the menu file located at /home/tc/.hackedbox/menu
[submenu] (Backgrounds) {Choose a background...}
[exec] (Refresh List) {make -f /usr/local/share/hackedbox/bgmenu.mk
[include] (~/.hackedbox/bgMenu)
[end]
Note the corrections are in bold.
You need to make the directory /home/tc/.hackedbox/backgrounds
You need the make.tce extension for 2.x
Copy your image(s) to the new /home/tc/.hackedbox/backgrounds directory
Then click on the Refresh List
If you don't see the image file names, try click on Restart
To recap, two typos in menu file
one missing directory
one .dep (make.tce) needed.
I will update the hackedbox extension later this afternoon.