I'm running Windows Server 2008 and Windows XP clients attached to the domain.
The local user has a background image specified, which I am trying to override with a GPO.
I attempting to set the desktop wallpaper by using a GPO to copy the image file to the local workstation in computer configuration\preferences\files
action: create
source file: \\mydomain.local\NETLOGON\wallpaper\background.bmp
destination file: c:\scripts\wallpaper\background.bmp
Then, setting the wallpaper in user configuration\administrative templates\desktop\desktop with the setting desktop wallpaper
wallpaper name: C:\scripts\wallpaper\background.bmp
wallpaper style: centered
I am able to see the default wallpaper briefly after logging in, but then it disappears and I'm left with a blank background.
The image file is available on the server, and is successfully copied to the local workstation.
The Client side extensions update is installed on the workstation and other user-based GPO settings are working.
Here are all the settings in the desktop GPO:

Am I missing something?
C:\documents and settings\all users\documents\test.bmp, set the wallpaper GPO to that location, ran thegpupdate /forcecommand, and rebooted. The background was still blank. – Force Flow Aug 6 '12 at 21:11