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WallpaperForRoamingProfiles

How to make wallpaper work with a roaming profile in Windows XP:

First, the wallpaper must be in BMP format. Using another format causes Windows to create a temporary BMP version that it uses instead. Of course, it stores this somewhere it won't find it again later. So, you end up with no wallpaper.

Put the wallpaper in C:\Windows\Web\Wallpaper. All users should have read rights by default.

Use RegEdit to modify the settings for HKey Current User\Control Panel\Desktop\*Wallpaper to point to the correct BMP file (if they do not already).