how do i create a theme for classic logon shell 2?

The themes are contained in zip files. An easy way to learn how they work is to look inside one. Once you figure out what the important bits are, it's pretty easy to create resources in a photo editing program. I recommend copying the contents of one of the included theme zip files into a new regular folder, then replacing the individual resources in the folder. Then, once everything is replaced, select the contents of the folder and add them to a zip file.
Make sure your zip file has the contents directly inside it, and not inside *another* folder inside the zip file. (This happens easily by mistake if you add the *entire folder* to a zip file instead of *just its contents.*)

Note; This will not create something similar to the real Windows 7 login. With this program, you are only able to make a new, Windows 7 styled, classic themed design.

Good luck, and let me know if you need any help.

Please refrain from opening a new thread on a subject you already have open. I've merged your two threads together.