I am getting the error "The file cannot be opened when i try to open some images as foreground or background images.
there is nothing wrong with the files i am selecting and they work in all other applications. And sometimes work in templatetoaster i can see to find a reason for it happening.
Please open a ticket at support http://templatetoaster.com/support/ and provide your image that you are uploading.
I have had this problem too. I found out that template toaster does not like the file extensions with capitals. .JPG with not open, but .jpg will. Try renaming your photos to .jpg without the caps.
Hope this helps. Josh.