Not able to change Desktop background in the Windows 7 Home Premium

I have recently bought a new HP desktop that came pre-installed with Windows 7 Home Premium. It is a new pc so I was expecting no issue in this. It also has Kaspersky internet security 2011 on it. Everything is working fine. I had started first moving my data in it. I copied my movies, audio and images in it. But I am not able to apply my own wallpapers. I am doing that by right clicking on the image > set as desktop background. But it is not working.

Looks like you have a damage user profile. So here you have to create a new and delete the older one. That will fix the issue. For that go in Control Panel and search for User Accounts. Create a new profile with admin rights and then remove the older one. Reboot your pc and login to your new profile. Windows will apply default settings and then try to change the wallpapers. This might work. If it is not working then just post back and if possible try to explain the same in more detail.

Sometime this kind of issue are also associated with Windows UI. You have to simply run a full system restore to fix it. If you got any recovery disc with the system then try to run. Remember that it will wipe out the system data. So do that wisely. Or else there kind be problem with the same. Just before that check for system restore. If there is no restore point available then you can go ahead with full system recovery.