I kept palying around and looking for what the changes were when creating a new logon and I found why iy quit working. I had made some changes under the Performance Options. I was using Custom Settings and found this to be the culprit.
Under Performance Options, Custom, Animate controls and elements inside windows. I this is unchecked Aero Peek quits working. If it's checked it starts working once again. Took some digging but it payed off.
So again it needs to be checked for Aero Peek to work.