Threadbit Image Overlayround

Open Gars_threadbit template

find :

                <td class="alt2" align="center" rowspan="2" valign="top" width="$stylevar[GARS_image_width]" style="padding: 10px;" >
                    <if condition="$thread['header_image']">
                        <a href="showthread.php?$session[sessionurl]t=$thread[threadid]$thread[highlight]"><img src="$thread[header_image]" border="0" style="border: 2px #000000;padding:2px;" alt="" /></a>
                    <else />
                        &nbsp;
                    </if>
                </td>

Replace with :

<td width="105" class="alt1" rowspan="2" valign="middle" align="center"><div class="smallfont" style="background-repeat: no-repeat; background-position: center; background-image: url($thread[header_image]); background-color: #000;">
<a href="showthread.php?$session[sessionurl]t=$thread[threadid]$thread[highlight]"><img alt="$thread[title]" border="0" src="$stylevar[imgdir_misc]/overlay-round.gif" /></a></div>
        </td>

Upload attached file to your misc folder and you are ready to go.

Demo