Solved: Can't change themes or desktop background

My daughter has a Dell XPS M1210 laptop running Windows XP Media Center Edition. She got fooled by PSGuard and thought she was downloading antispyware software after a warning came on her screen. She ended up with the TrojanDownloder.xs and the SmitFraud problem. With a lot of assistance from past posts I was able to I think delete most of the problems. But I still can't change her theme or desktop background. I got rid of the "you have spyware and need to download spyware removal software" backgroun by now the screen is blue or a solid color and nothing else.

Here is the HiJackThis file.

Logfile of Trend Micro HijackThis v2.0.2
Scan saved at 11:51:34 PM, on 10/27/2007
Platform: Windows XP SP2 (WinNT 5.01.2600)
MSIE: Internet Explorer v7.00 (7.00.6000.16544)
Boot mode: Normal

Running processes:
C:\WINDOWS\System32\smss.exe
C:\WINDOWS\system32\winlogon.exe
C:\WINDOWS\system32\services.exe
C:\WINDOWS\system32\lsass.exe
C:\WINDOWS\system32\svchost.exe
C:\WINDOWS\System32\svchost.exe
C:\Program Files\Intel\Wireless\Bin\EvtEng.exe
C:\WINDOWS\Explorer.EXE
C:\Program Files\Intel\Wireless\Bin\S24EvMon.exe
C:\Program Files\Intel\Wireless\Bin\WLKeeper.exe
C:\WINDOWS\system32\spoolsv.exe
c:\program files\common files\logitech\lvmvfm\LVPrcSrv.exe
C:\PROGRA~1\COMMON~1\AOL\ACS\AOLacsd.exe
C:\Program Files\Common Files\Creative Labs Shared\Service\CreativeLicensing.exe
C:\WINDOWS\system32\CTsvcCDA.exe
C:\WINDOWS\eHome\ehRecvr.exe
C:\WINDOWS\eHome\ehSched.exe
C:\Program Files\Dell Network Assistant\hnm_svc.exe
C:\PROGRA~1\TRENDM~1\INTERN~1\PcCtlCom.exe
C:\Program Files\Intel\Wireless\Bin\RegSrvc.exe
C:\WINDOWS\system32\stacsv.exe
C:\WINDOWS\system32\svchost.exe
C:\PROGRA~1\TRENDM~1\INTERN~1\Tmntsrv.exe
C:\PROGRA~1\TRENDM~1\INTERN~1\TmPfw.exe
C:\PROGRA~1\TRENDM~1\INTERN~1\tmproxy.exe
C:\Program Files\Viewpoint\Common\ViewpointService.exe
C:\WINDOWS\system32\dllhost.exe
C:\WINDOWS\ehome\ehtray.exe
C:\WINDOWS\eHome\ehmsas.exe
C:\Program Files\Synaptics\SynTP\SynTPEnh.exe
C:\WINDOWS\stsystra.exe
C:\Program Files\Dell\QuickSet\quickset.exe
C:\Program Files\Creative\SBAudigy\Surround Mixer\CTSysVol.exe
C:\WINDOWS\system32\Rundll32.exe
C:\WINDOWS\system32\LVCOMSX.EXE
C:\DOCUME~1\MICHEL~1\LOCALS~1\Temp\clclean.0001
C:\Program Files\Logitech\Video\CameraAssistant.exe
C:\Program Files\Trend Micro\Internet Security 14\pccguide.exe
C:\WINDOWS\System32\DLA\DLACTRLW.EXE
C:\Program Files\Common Files\InstallShield\UpdateService\issch.exe
C:\Program Files\Google\Google Desktop Search\GoogleDesktop.exe
C:\Program Files\Dell\MediaDirect\PCMService.exe
C:\Program Files\iTunes\iTunesHelper.exe
C:\Program Files\Corel\Corel Snapfire Plus\Corel Photo Downloader.exe
C:\Program Files\iPod\bin\iPodService.exe
C:\WINDOWS\system32\hkcmd.exe
C:\WINDOWS\system32\igfxpers.exe
C:\WINDOWS\system32\igfxsrvc.exe
C:\Program Files\Lavasoft\Ad-Aware 2007\AAWTray.exe
C:\Program Files\Google\Google Desktop Search\GoogleDesktopIndex.exe
C:\Program Files\Intel\Wireless\bin\ZCfgSvc.exe
C:\Program Files\Intel\Wireless\Bin\ifrmewrk.exe
C:\Program Files\NetWaiting\netWaiting.exe
C:\Program Files\Trend Micro\Internet Security 14\TMAS_OE\TMAS_OEMon.exe
C:\Program Files\Dell Support\DSAgnt.exe
C:\Program Files\AIM6\aim6.exe
C:\Program Files\Spybot - Search & Destroy\TeaTimer.exe
C:\WINDOWS\system32\ctfmon.exe
C:\Program Files\SUPERAntiSpyware\SUPERAntiSpyware.exe
C:\Program Files\Google\GoogleToolbarNotifier\1.2.1128.5462\GoogleToolbarNotifier.exe
C:\Program Files\Dell Network Assistant\ezi_hnm2.exe
C:\Program Files\Digital Line Detect\DLG.exe
C:\Program Files\Viewpoint\Viewpoint Manager\ViewMgr.exe
C:\Program Files\AIM6\aolsoftware.exe
C:\Program Files\internet explorer\iexplore.exe
C:\WINDOWS\System32\svchost.exe
C:\Program Files\Trend Micro\HijackThis\HijackThis.exe

R1 - HKCU\Software\Microsoft\Internet Explorer\Main,Search Page = http://go.microsoft.com/fwlink/?LinkId=54896
R1 - HKLM\Software\Microsoft\Internet Explorer\Main,Default_Page_URL = http://go.microsoft.com/fwlink/?LinkId=69157
R1 - HKLM\Software\Microsoft\Internet Explorer\Main,Default_Search_URL = http://go.microsoft.com/fwlink/?LinkId=54896
R1 - HKLM\Software\Microsoft\Internet Explorer\Main,Search Page = http://go.microsoft.com/fwlink/?LinkId=54896
R0 - HKLM\Software\Microsoft\Internet Explorer\Main,Start Page = http://go.microsoft.com/fwlink/?LinkId=69157
R0 - HKCU\Software\Microsoft\Internet Explorer\Main,Local Page =
O2 - BHO: Adobe PDF Reader Link Helper - {06849E9F-C8D7-4D59-B87D-784B7D6BE0B3} - C:\Program Files\Adobe\Acrobat 7.0\ActiveX\AcroIEHelper.dll
O2 - BHO: Spybot-S&D IE Protection - {53707962-6F74-2D53-2644-206D7942484F} - C:\PROGRA~1\SPYBOT~1\SDHelper.dll
O2 - BHO: DriveLetterAccess - {5CA3D70E-1895-11CF-8E15-001234567890} - C:\WINDOWS\System32\DLA\DLASHX_W.DLL
O2 - BHO: (no name) - {6abc861a-31e7-4d91-b43b-d3c98f22a5c0} - (no file)
O2 - BHO: SSVHelper Class - {761497BB-D6F0-462C-B6EB-D4DAF1D92D43} - C:\Program Files\Java\jre1.5.0_06\bin\ssv.dll
O2 - BHO: (no name) - {a4a435cf-3583-11d4-91bd-0048546a1450} - (no file)
O2 - BHO: Google Toolbar Helper - {AA58ED58-01DD-4d91-8333-CF10577473F7} - c:\program files\google\googletoolbar1.dll
O3 - Toolbar: &Google - {2318C2B1-4965-11d4-9B18-009027A5CD4F} - c:\program files\google\googletoolbar1.dll
O4 - HKLM\..\Run: [ehTray] C:\WINDOWS\ehome\ehtray.exe
O4 - HKLM\..\Run: [SynTPEnh] C:\Program Files\Synaptics\SynTP\SynTPEnh.exe
O4 - HKLM\..\Run: [SigmatelSysTrayApp] stsystra.exe
O4 - HKLM\..\Run: [Dell QuickSet] C:\Program Files\Dell\QuickSet\quickset.exe
O4 - HKLM\..\Run: [CTSysVol] C:\Program Files\Creative\SBAudigy\Surround Mixer\CTSysVol.exe /r
O4 - HKLM\..\Run: [MBMon] Rundll32 CTMBHA.DLL,MBMon
O4 - HKLM\..\Run: [UpdReg] C:\WINDOWS\UpdReg.EXE
O4 - HKLM\..\Run: [LVCOMSX] C:\WINDOWS\system32\LVCOMSX.EXE
O4 - HKLM\..\Run: [LogitechCameraAssistant] C:\Program Files\Logitech\Video\CameraAssistant.exe
O4 - HKLM\..\Run: [LogitechVideo[inspector]] C:\Program Files\Logitech\Video\InstallHelper.exe /inspect
O4 - HKLM\..\Run: [pccguide.exe] "C:\Program Files\Trend Micro\Internet Security 14\pccguide.exe"
O4 - HKLM\..\Run: [DLA] C:\WINDOWS\System32\DLA\DLACTRLW.EXE
O4 - HKLM\..\Run: [ISUSPM Startup] C:\PROGRA~1\COMMON~1\INSTAL~1\UPDATE~1\ISUSPM.exe -startup
O4 - HKLM\..\Run: [ISUSScheduler] "C:\Program Files\Common Files\InstallShield\UpdateService\issch.exe" -start
O4 - HKLM\..\Run: [Google Desktop Search] "C:\Program Files\Google\Google Desktop Search\GoogleDesktop.exe" /startup
O4 - HKLM\..\Run: [PCMService] "C:\Program Files\Dell\MediaDirect\PCMService.exe"
O4 - HKLM\..\Run: [iTunesHelper] "C:\Program Files\iTunes\iTunesHelper.exe"
O4 - HKLM\..\Run: [Corel Photo Downloader] C:\Program Files\Corel\Corel Snapfire Plus\Corel Photo Downloader.exe
O4 - HKLM\..\Run: [igfxtray] C:\WINDOWS\system32\igfxtray.exe
O4 - HKLM\..\Run: [igfxhkcmd] C:\WINDOWS\system32\hkcmd.exe
O4 - HKLM\..\Run: [igfxpers] C:\WINDOWS\system32\igfxpers.exe
O4 - HKLM\..\Run: [AAWTray] C:\Program Files\Lavasoft\Ad-Aware 2007\AAWTray.exe
O4 - HKLM\..\Run: [IntelZeroConfig] "C:\Program Files\Intel\Wireless\bin\ZCfgSvc.exe"
O4 - HKLM\..\Run: [IntelWireless] "C:\Program Files\Intel\Wireless\Bin\ifrmewrk.exe" /tf Intel PROSet/Wireless
O4 - HKCU\..\Run: [ModemOnHold] C:\Program Files\NetWaiting\netWaiting.exe
O4 - HKCU\..\Run: [SetDefaultMIDI] MIDIDef.exe
O4 - HKCU\..\Run: [OE_OEM] "C:\Program Files\Trend Micro\Internet Security 14\TMAS_OE\TMAS_OEMon.exe"
O4 - HKCU\..\Run: [DellSupport] "C:\Program Files\Dell Support\DSAgnt.exe" /startup
O4 - HKCU\..\Run: [Aim6] "C:\Program Files\AIM6\aim6.exe" /d locale=en-US ee://aol/imApp
O4 - HKCU\..\Run: [SpybotSD TeaTimer] C:\Program Files\Spybot - Search & Destroy\TeaTimer.exe
O4 - HKCU\..\Run: [ctfmon.exe] C:\WINDOWS\system32\ctfmon.exe
O4 - HKCU\..\Run: [SUPERAntiSpyware] C:\Program Files\SUPERAntiSpyware\SUPERAntiSpyware.exe
O4 - HKCU\..\Run: [swg] C:\Program Files\Google\GoogleToolbarNotifier\1.2.1128.5462\GoogleToolbarNotifier.exe
O4 - HKUS\S-1-5-18\..\RunOnce: [RunNarrator] Narrator.exe (User 'SYSTEM')
O4 - HKUS\.DEFAULT\..\RunOnce: [RunNarrator] Narrator.exe (User 'Default user')
O4 - Global Startup: Adobe Reader Speed Launch.lnk = C:\Program Files\Adobe\Acrobat 7.0\Reader\reader_sl.exe
O4 - Global Startup: Dell Network Assistant.lnk = ?
O4 - Global Startup: Digital Line Detect.lnk = ?
O9 - Extra button: (no name) - {08B0E5C0-4FCB-11CF-AAA5-00401C608501} - C:\Program Files\Java\jre1.5.0_06\bin\ssv.dll
O9 - Extra 'Tools' menuitem: Sun Java Console - {08B0E5C0-4FCB-11CF-AAA5-00401C608501} - C:\Program Files\Java\jre1.5.0_06\bin\ssv.dll
O9 - Extra button: Research - {92780B25-18CC-41C8-B9BE-3C9C571A8263} - C:\PROGRA~1\MICROS~4\OFFICE11\REFIEBAR.DLL
O9 - Extra button: Real.com - {CD67F990-D8E9-11d2-98FE-00C0F0318AFE} - C:\WINDOWS\system32\Shdocvw.dll
O9 - Extra button: (no name) - {DFB852A3-47F8-48C4-A200-58CAB36FD2A2} - C:\PROGRA~1\SPYBOT~1\SDHelper.dll
O9 - Extra 'Tools' menuitem: Spybot - Search & Destroy Configuration - {DFB852A3-47F8-48C4-A200-58CAB36FD2A2} - C:\PROGRA~1\SPYBOT~1\SDHelper.dll
O9 - Extra button: (no name) - {e2e2dd38-d088-4134-82b7-f2ba38496583} - C:\WINDOWS\Network Diagnostic\xpnetdiag.exe
O9 - Extra 'Tools' menuitem: @xpsp3res.dll,-20001 - {e2e2dd38-d088-4134-82b7-f2ba38496583} - C:\WINDOWS\Network Diagnostic\xpnetdiag.exe
O9 - Extra button: Messenger - {FB5F1910-F110-11d2-BB9E-00C04F795683} - C:\Program Files\Messenger\msmsgs.exe
O9 - Extra 'Tools' menuitem: Windows Messenger - {FB5F1910-F110-11d2-BB9E-00C04F795683} - C:\Program Files\Messenger\msmsgs.exe
O16 - DPF: {54D53429-945C-4188-B460-C81356541882} (SaveImageFiles Class) - http://photosmart.hpphoto.com/Download/HPeServicesLocalPrint.CAB
O16 - DPF: {6E32070A-766D-4EE6-879C-DC1FA91D2FC3} (MUWebControl Class) - http://update.microsoft.com/microsoftupdate/v6/V5Controls/en/x86/client/muweb_site.cab?1179540738937
O16 - DPF: {B8BE5E93-A60C-4D26-A2DC-220313175592} (MSN Games - Installer) - http://cdn2.zone.msn.com/binFramework/v10/ZIntro.cab56649.cab
O16 - DPF: {E008A543-CEFB-4559-912F-C27C2B89F13B} (Domino Web Access 7 Control) - https://domino2.wcpss.net/dwa7W.cab
O20 - AppInit_DLLs: C:\PROGRA~1\Google\GOOGLE~1\GOEC62~1.DLL
O20 - Winlogon Notify: !SASWinLogon - C:\Program Files\SUPERAntiSpyware\SASWINLO.dll
O23 - Service: Ad-Aware 2007 Service (aawservice) - Lavasoft AB - C:\Program Files\Lavasoft\Ad-Aware 2007\aawservice.exe
O23 - Service: AOL Connectivity Service (AOL ACS) - America Online, Inc. - C:\PROGRA~1\COMMON~1\AOL\ACS\AOLacsd.exe
O23 - Service: Creative Labs Licensing Service - Creative Labs - C:\Program Files\Common Files\Creative Labs Shared\Service\CreativeLicensing.exe
O23 - Service: Creative Service for CDROM Access - Creative Technology Ltd - C:\WINDOWS\system32\CTsvcCDA.exe
O23 - Service: Intel(R) PROSet/Wireless Event Log (EvtEng) - Intel Corporation - C:\Program Files\Intel\Wireless\Bin\EvtEng.exe
O23 - Service: GoogleDesktopManager - Google - C:\Program Files\Google\Google Desktop Search\GoogleDesktopManager.exe
O23 - Service: Google Updater Service (gusvc) - Google - C:\Program Files\Google\Common\Google Updater\GoogleUpdaterService.exe
O23 - Service: Advanced Networking Service (hnmsvc) - SingleClick Systems - C:\Program Files\Dell Network Assistant\hnm_svc.exe
O23 - Service: InstallDriver Table Manager (IDriverT) - Macrovision Corporation - C:\Program Files\Common Files\InstallShield\Driver\11\Intel 32\IDriverT.exe
O23 - Service: iPodService - Apple Computer, Inc. - C:\Program Files\iPod\bin\iPodService.exe
O23 - Service: Logitech Process Monitor (LVPrcSrv) - Logitech Inc. - c:\program files\common files\logitech\lvmvfm\LVPrcSrv.exe
O23 - Service: Trend Micro Central Control Component (PcCtlCom) - Trend Micro Inc. - C:\PROGRA~1\TRENDM~1\INTERN~1\PcCtlCom.exe
O23 - Service: Intel(R) PROSet/Wireless Registry Service (RegSrvc) - Intel Corporation - C:\Program Files\Intel\Wireless\Bin\RegSrvc.exe
O23 - Service: Intel(R) PROSet/Wireless Service (S24EventMonitor) - Intel Corporation - C:\Program Files\Intel\Wireless\Bin\S24EvMon.exe
O23 - Service: SigmaTel Audio Service (STacSV) - SigmaTel, Inc. - C:\WINDOWS\system32\stacsv.exe
O23 - Service: Trend Micro Real-time Service (Tmntsrv) - Trend Micro Inc. - C:\PROGRA~1\TRENDM~1\INTERN~1\Tmntsrv.exe
O23 - Service: Trend Micro Personal Firewall (TmPfw) - Trend Micro Inc. - C:\PROGRA~1\TRENDM~1\INTERN~1\TmPfw.exe
O23 - Service: Trend Micro Proxy Service (tmproxy) - Trend Micro Inc. - C:\PROGRA~1\TRENDM~1\INTERN~1\tmproxy.exe
O23 - Service: Viewpoint Manager Service - Viewpoint Corporation - C:\Program Files\Viewpoint\Common\ViewpointService.exe
O23 - Service: Intel(R) PROSet/Wireless SSO Service (WLANKEEPER) - Intel(R) Corporation - C:\Program Files\Intel\Wireless\Bin\WLKeeper.exe

--
End of file - 12315 bytes


Thanks for any help.

 

Cannot change wallpaper

Open up the Registry editor by going to Start => Run and typing in "regedit" {without the quotes}

Navigate to this key:
HKEY_CURRENT_USER
Software
Microsoft
Windows
CurrentVersion
Policies
System

Look for a String in the right-hand pane called Wallpaper. If it's there, probably pointing to the path to an image file, note down this path so you can delete the file later. Now right-click on Wallpaper and Delete it.

-----------------------------------------------------
Another possiblty:

Right-click anywhere on your desktop and select 'Properties'.
Click the 'Desktop' tab and click the 'Customize Desktop' tab.
Click the 'Web' tab and delete everything except "My current Home page"
Uncheck (clear) 'My current Home page'.
Click OK and retry a Desktop background.

==============================

Cannot apply Windows XP themes. Only Classic View available.

Go to Start => Run and type in services.msc
Maximize the Services window that opens and scroll down to Themes
Double-click on it.
Set the Startup type to Automatic and click the Start button.
Exit Services


----------------------------------------------------------

Windows XP style not available

Right-click My Computer and click on Properties.
Click on the Advanced tab and in the Performance section click the Settings button.
Under the Visual Effects tab check the box 'Use visual styles on windows and buttons'.

-----------------------------------------------------------

 

Thanks Claymore, nothing changed.

Cannot change wallpaper

Open up the Registry editor by going to Start => Run and typing in "regedit" {without the quotes}

Navigate to this key:
HKEY_CURRENT_USER
Software
Microsoft
Windows
CurrentVersion
Policies
System

Look for a String in the right-hand pane called Wallpaper. If it's there, probably pointing to the path to an image file, note down this path so you can delete the file later. Now right-click on Wallpaper and Delete it.

There was noting in the registry other then a default
-----------------------------------------------------
Another possiblty:

Right-click anywhere on your desktop and select 'Properties'.
Click the 'Desktop' tab and click the 'Customize Desktop' tab.
Click the 'Web' tab and delete everything except "My current Home page"
Uncheck (clear) 'My current Home page'.
Click OK and retry a Desktop background.

==============================

There was nothing in the webpage box. I tried to make a picture she had the desktop background but that did not work.

Cannot apply Windows XP themes. Only Classic View available.

Go to Start => Run and type in services.msc
Maximize the Services window that opens and scroll down to Themes
Double-click on it.
Set the Startup type to Automatic and click the Start button.
Exit Services

It was already in automatic and started. I stopped it and then restarted it in a attempt to maybe get in working. No such luck.

----------------------------------------------------------

Windows XP style not available

Right-click My Computer and click on Properties.
Click on the Advanced tab and in the Performance section click the Settings button.
Under the Visual Effects tab check the box 'Use visual styles on windows and buttons'.

SHe already had it set "Let windows choose best settings" and that box was checked. I tried changing it and then going back to it and it sitll did not work.

In the Themes part it will aloow you to choos a theme but only the background color changes, no theme, but the icons change.

In the desktop part the background pictures you can choose can't be chosen, like Aquarium, and the Browse button Position are grayed out.

Thanks for the ideas. Any others??

 

Download the Attached File > Unzip it > Double Click on 'Regquery.bat' > A Notepad will pop up > copy and paste Everything here

 

Thanks Devil.....here it is.

SteelWerX Registry Console Tool 2.0
Written by Bobbi Flekman 2006 (C)

Error: Key: software\microsoft\windows nt\currentversion\policies does not exist!


SteelWerX Registry Console Tool 2.0
Written by Bobbi Flekman 2006 (C)

HKEY_CURRENT_USER\software\microsoft\windows\currentversion\policies

HKEY_CURRENT_USER\software\microsoft\windows\currentversion\policies\ActiveDesktop

HKEY_CURRENT_USER\software\microsoft\windows\currentversion\policies\Associations

HKEY_CURRENT_USER\software\microsoft\windows\currentversion\policies\Explorer
NoDriveTypeAutoRun REG_DWORD 145 (0x91)
NoSetActiveDesktop REG_DWORD 1 (0x1)

HKEY_CURRENT_USER\software\microsoft\windows\currentversion\policies\Explorer\Run

HKEY_CURRENT_USER\software\microsoft\windows\currentversion\policies\System

SteelWerX Registry Console Tool 2.0
Written by Bobbi Flekman 2006 (C)

HKEY_LOCAL_MACHINE\software\microsoft\windows\currentversion\policies

HKEY_LOCAL_MACHINE\software\microsoft\windows\currentversion\policies\ActiveDesktop
NoChangingWallpaper REG_DWORD 1 (0x1)

HKEY_LOCAL_MACHINE\software\microsoft\windows\currentversion\policies\Explorer
NoSetActiveDesktop REG_DWORD 1 (0x1)
NoDriveAutoRun REG_DWORD 67108863 (0x3ffffff)
NoDriveTypeAutoRun REG_DWORD 255 (0xff)

HKEY_LOCAL_MACHINE\software\microsoft\windows\currentversion\policies\Explorer\Run

HKEY_LOCAL_MACHINE\software\microsoft\windows\currentversion\policies\NonEnum
{BDEADF00-C265-11D0-BCED-00A0C90AB50F} REG_DWORD 1 (0x1)
{6DFD7C5C-2451-11d3-A299-00C04F8EF6AF} REG_DWORD 1073741857 (0x40000021)
{0DF44EAA-FF21-4412-828E-260A8728E7F1} REG_DWORD 32 (0x20)

HKEY_LOCAL_MACHINE\software\microsoft\windows\currentversion\policies\Ratings

HKEY_LOCAL_MACHINE\software\microsoft\windows\currentversion\policies\system
dontdisplaylastusername REG_DWORD 0 (0x0)
legalnoticecaption REG_SZ
legalnoticetext REG_SZ
shutdownwithoutlogon REG_DWORD 1 (0x1)
undockwithoutlogon REG_DWORD 1 (0x1)
InstallVisualStyle REG_EXPAND_SZ C:\WINDOWS\Resources\Themes\Royale\Royale.msstyles
InstallTheme REG_EXPAND_SZ C:\WINDOWS\Resources\Themes\Royale.theme

HKEY_LOCAL_MACHINE\software\microsoft\windows\currentversion\policies\Uninstall

 

Devil...is this it right here?

HKEY_LOCAL_MACHINE\software\microsoft\windows\currentversion\policies\Activ eDesktop
NoChangingWallpaper REG_DWORD 1 (0x1)

hmmmm.......

 

Start > Run > regedit > Navigate to

HKEY_LOCAL_MACHINE\software\microsoft\windows\currentversion\policies\ActiveDesktop

On the Right Pane Delete "NoChangingWallpaper"

 

That was it!!!!!! Thank you...my daughter thanks you. She is a school teacher and the notebook was causing her all kinds of misery. Works fine now!!!

 

Glad You Got It Fixed ....