No I left pic 000 as is. I have been using it as my title screen for now instead of the one (300) that was included. Everything works fine at start up and running. But tonight when I got the death room working I actually clicked on restart. It was quite the rainbow effect. If you still have a copy I passed along, you should be able to see what I mean. Just start the game and the first chance you get select restart from the menu, I was using 000 then too. Its the same call to restart, so it produces the same effect. Again, this is only an issue when the title screen is 000. I copied the pic and saved it as a different number and there was no issue whatsoever. So it's nothing wrong with the actual picture resource itself per se, just the resource number. So just something to take a mental note of... steer clear of using pic 000, it may have some adverse effects.
And no, I have only been using dosbox to develop with, not scumm. The gDongle must be why there were some issues, we'll probably want to throw in a couple of comment lines not to add any variables etc above here or something to that effect. Really I was just going through some of the globalxx variables and seeing if I could come up with a more relevant or throwback name... like global2 => gRoom, etc.