Everything is working as it should, nothing is grayed out, there are no error messages. Right click menu displays correct options, personalize menu looks correct, all themes and wallpapers are there, I can select them, I can select slideshow images in check boxes, but when I hit Apply and OK, nothing happens, the BG stays solid black. I can chose from solid colors, they do change, but I cant select images, even when I apply selected wallpaper from context menu it wont change, I even tried through 3rd party image viewers like ACDsee, Windows Live photo gallery (not really a 3rd party app), Fast stone image w, Picasa 3...Nothing. I consider myself as an advanced user, this is not a simple issue, there is probably something blocking wallpapers from registry, I tried accessibility options, too. I would hate to reinstall W7 just because of this issue...Will try to patch it again.