http://blog.songbirdnest.com/2008/03/14/moz-border-radius-clips-background-images-now-yay/
Recent browsers can clip background images, which Nivo uses, with border-radius.
-moz-border-radius: 8px; /* FF1+ */
-webkit-border-radius: 8px; /* Saf3-4 */
border-radius: 8px; /* Opera 10.5, IE 9, Saf5, Chrome */
Unfortunately, ≤IE8 users will be left out of the dust.
The best solution is to simply just convert these images to PNG and use a transparent background, or make sure the background matches the HTML colors (that's what the issue is with those 'corners').