cheers for the quick reply is it easy to modify the background ?? lol
That depends on your setup.
I have Netatalk on my iPhone 5 which allows me to connect to my iPhone as if it was a network share. So, I simply connected to the phone from Finder (I use a PowerPC Mac) and navigated to the iWidgets folder. I duplicated the M2_Weather widget folder and renamed it and then open it and edited the background file (it's a PNG) by opening it in Photoshop, selecting all and then deleting the gray background. Then I saved the file.
Because it's a transparent PNG my Springboard background shows through.
That's how I did it. However your setup is, if you want the background to be clear you'll need to modify the background PNG to be transparent.