To get transparency with conky in xfce, I had to go to Menu>Settings>Window Manager Tweeks>Compositor, then put a tick next to Enable Display Composting.
I then altered the .conkyrc file. Commenting out the Create own window section & it works.
# Create own window instead of using desktop (required in nautilus)
# own_window yes
# own_window_transparent yes
# own_window_type desktop
# own_window_hints undecorated,below,sticky,skip_taskbar,skip_pager
This is more of a note to self.