Text on desktop icons has background color - not transparent

A friend was trying to import a picture from an old presentation into Word
and suddenly his whole desktop appearance changed. His background picture
zoomed out, which I fixed, but now the text on his desktop icons over this
picture have a background color instead of being transparent.
I have tried every imaginable setting that is suggested in various web
sites, but am unable to fix this. I have tried changing the performance
settings to use/not use drop shadows, tried any color for the background for
the display settings, etc.
How can I help him get his icon text to be transparent again to give the
best view of his background photo?

Four things are required for transparent icon backgrounds:

1.Control Panel-System-Advanced-Performance Settings.
Check "Use drop shadows for icon labels on the desktop" on the Visual
Effects tab.

2.Right-click on Desktop - "Arrange Icons by" and ensure Lock Web
items is cleared.

3.Transparency will not work if you have web content on your desktop,
Control Panel - Display Properties - Desktop tab - Customize Desktop -
Web tab. Clear all check boxes.

4. Ensure the Wallpaper is an image file not HTML.

[dodos57]

I has encounter this problem before and i see that for each computer there is some solution that work and some solution that does not work at all. But the cause of this problem is from active desktop. i find that there are many solution at this you can check it

Just wanted to thank Alan Edwards for his brilliant response which worked immediately.

Also make sure the images are either jpeg or bitmap windows dosent handle png images very well.

click on the Control Panel icon to open up the Control Panel.
Now, Double click on the System icon to open up the System Properties
Now click on the Advanced tab located at the top of the screen.
Then click on the Settings button located within the Performance section.
This will open up the Performance Options window for you.
The Visual Effects tab is opened by default allowing you to scroll down the
listing.
Scroll down and place a check mark next to Use drop shadows for icon labels
on the Desktop.
Then click on the OK button to save the changes and then close all the
remaining open windows.

[master0009]

Thank you Alan, very precise and step by step explanation.

[Airfield]

My sincere THANKS to Alan Edwards . His advice had immediate effect on my desktop. Well done .

[neyal]

Thank U very Much.....from ur side only i got cleared...great...super...thanks

[agiiiiga]

My sincere THANKS to Alan Edwards . His advice had immediate effect on my desktop.