Desktop WallPaper Group Policy setting is not applied on Windows 7 and Windows 2008 R2 Machines
While I was implementing Desktop Wallpaper group policy in my company I found that group ploicy does not applies for the domain users logging with Windows 7 clients. I tried my level best to solve the problem by checking the log files running all the commands from CMD to check if the Group policy is applied but all my efforts were useless at last I found a fresh Kb article which was published on February 8, 2010 solved the issue. I hope this information will help others to solve there issues related to Group Plicies on Windows 7
http://support.microsoft.com/kb/977944
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