I have a Windows Form (C# .NET 3.5) with a number of buttons and other controls on it, all assigned to a topmost Panel which spans the whole Form. For example, the hierarchy
I also faced the same problem and could solve it by reducing the resolution of the background picture. When you use big sized (eg:1280X800) pictures as the background, it will take time to draw controls on the form. It is better to open the picture in 'Paint' re size it smaller than your form and then save in 'bmp' format. Now try to add this picture as your form's background.