Contrary to what terminal shows in the image, I've since edited the .conkyrc file in my home folder and I still have the same transparency problem i.e. conky shows black black background instead of a transparent background.
I've also tried setting my background using feh as I've seen as a suggested fix.
Any help is appreciated and if this problem has already been solved, please provide the link. Thanks!!!
EDIT: I'm running Linux Mint 11 Katya