It seems like some of the themes on Winterboard that are stock don't work correctly on my iPhone 4 (4.0). The "No Docked Icon Labels" doesn't work as well as the "Transparent Dock."

Anyone else experiencing this and know of a fix?

Winterboard is not yet 100% iOS 4.0 ready. A lot of users (including the post right next to yours) are mentioning the same thing and note some of the same packages. Keep an eye out, I expect to see them hacking away on it to get it up to snuff in the near future. It's causing a mess of issues for people now -- everything from glitchy SMS logs to non-working replacement keyboards, etc.

I would stay away from Winterboard until they claim 4.0 compatibility -- which they do not yet.