Lubuntu Terminator does not have the option for background image

Solution 1:

Should have done more digging. Apparently according to this article it's no longer possible as of version 1.90, and it is currently version 1.91

Then there's the second release which is 1.90. This is pretty solid, and should be usable as your daily driver with 99% of the gtk2 functionality. Of course the new libvte widget is much improved so you'll notice nice improvements in places. One thing we did lose (the missing 1%) in the port to gtk3 was the background image. This is not the Terminator projects fault. The libvte project chose to excise the capability to set an image as the background from the widget. I have figured out a way to add this back in, but that can wait till 2.1. We do however still have true transparency.