I finally got around to updating my iphone from 4.2.1 to 4.3.3 when I noticed that my clear lock screen showed the Apple slider. A few searches later and the issue is solved however I then got a notification and again my clear lock screen was not so clear. I bit of hunting around and I found the MobileNotifier PNG images.

/Library/Application Support/MobileNotifier/

The only PNG I changed was the "lockscreenbg.png" but I now have a complete clear lock screen again with MobileNotifier.