I fixed it. You needed to set your scalemode on the form to "3-Pixel". That's it. Now you just need to fix that flicker the sprite gives.
If you were trying to make a custom coordinate system it didn't work. Also I'm pretty sure the windows API doesn't honor the vb custom coordinate system.
BTW: Don't put the scalemode on twips. It does some weird stuff!
Drewski
I see said the blind man as he spat into the wind.