GPO active desktop wallpaper does not work on windows 7

I have a client using Windows 2003 Small Business Server with several XP clients. He use a active desktop .htm file GPO as a Wallpaper on all Clients PC. This works properly all on XP systems without any problem. But we recently installed Windows 7 on one of the computers and the wallpaper GPO is not working on it. While searching solution for the same I found the Microosft Hotfix in this KB Article http://support.microsoft.com/kb/977944. Applied the same but it dint helped.

There is also a registry fix provided in that article, I applied the same as well but that too dint worked. I don’t know why GPO is not working to set the wallpapers on Windows 7 system. It only works on XP. Can anyone please tell me what am I missing and how can I fix it?

Many Thanks.

In order to make the GPO work fine on Windows 7 client, you will need to put .htm file under Windows 7 itself. Just try doing this if you haven’t done it yet. Once done, just try applying a jpg file and see if it works now. Let me know the results.

Thank you very much for the help friend. That really helped. What I did was .htm file was already saved on the server and the path was entered properly in the registry. I just tried putting a jpg file in exactly the same group policy and now it works fine.

I created an OU with GPO, enabled the active desktop wallpaper with UNC path (\\server\share\xxx.jpg), but when i already tried testing it with 2 user accounts, both displayed differently: acct#1(windows 7) work just right, but acct#2 (windows 7) projected a black background. I noticed that when i logoff acct#2 the desired wallpaper appeared for a second before it totally logoff.