That's not really the normal way to show a contextmenustrip, usually you use assign it to the ContextMenuStrip property of the control you want it to show for, and it will show on a right-click.

As for your image problem, I'm not sure. Try closing the form in the designer, saving the solution, closing Visual Studio and finally deleting the bin and obj folders from the project. Then open it again and Build the solution, that might fix it. But that's just speculation, it's the first thing you should try when you see some strange behavior like that.

Still, you didn't answer my most important question: does the same happen (for both problems) if you use a regular ContextMenuStrip instead of my custom one? If it does, then the problem is not my custom ContextMenuStrip.