I found a solution to my preferences file editing problem.
I decided to try placing entries in prefoverride, (copy/pasted from prefrences).
They work using this method.
I changed the clock back to LED (Since my theme overrode this)
I placed the taskbar at the top. (I have a faulty screen protector that slightly obscures the clock in the bottom right hand corner)
I still have problems with the setting in the post above, it still cancels the taskbar and all input with keyboard except ctrl+alt+bs
# Show APM/ACPI/Battery/Power status monitor on task bar
TaskBarShowAPMStatus=1 # 0/1
I'm going to skip that for now, maybe this version of icewm is missing the battery/power monitor.