I have come across this twice. Once I fixed and the other one is still doing my head in. Here is the solution that worked on the first laptop. The problem was related to Group Policy.

[FONT='Verdana','sans-serif']Run regedit and check the location here:

User Key: [HKEY_CURRENT_USER\Software\Microsoft\Windows\Curre ntVersion\Policies\
System]
Value Name: Wallpaper, WallpaperStyle
Data Type: REG_SZ (String Value)
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Normally there is NO policy set in this key. If the policy above is set, the user cannot change wallpaper styles.

You can right click on and delete any values there.

If nothing there, also check this key for the same entry:

HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Windows\Curr entVersion\policies\syste m

You will normally see some policies set in this key, but not the one above. [/font]
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[FONT='Verdana','sans-serif']If that fails, copy the following into a text file and then rename the file extension to .reg. Double click it to import it into the registry. Reboot and test.[/font]
[FONT='Verdana','sans-serif'][/font]
[FONT='Verdana','sans-serif']Windows Registry Editor Version 5.00[/font]
[FONT='Verdana','sans-serif'][HKEY_CURRENT_USER\Software\Microsoft\Windows\Curre ntVersion\Policies\Explorer]
"NoActiveDesktopChanges"=hex:00,00,00,00
"NoActiveDesktop"=dword:00000000
"NoSaveSettings"=dword:00000000
"ClassicShell"=dword:00000000
"NoThemesTab"=dword:00000000[/font]
[FONT='Verdana','sans-serif'][HKEY_CURRENT_USER\Software\Microsoft\Windows\Curre ntVersion\Policies\System]
"NoDispAppearancePage"=dword:00000000
"NoColorChoice"=dword:00000000
"NoSizeChoice"=dword:00000000
"NoDispBackgroundPage"=dword:00000000
"NoDispScrSavPage"=dword:00000000
"NoDispCPL"=dword:00000000
"NoVisualStyleChoice"=dword:00000000
"NoDispSettingsPage"=dword:00000000
"NoDispScrSavPage"=dword:00000000
"NoVisualStyleChoice"=dword:00000000
"NoSizeChoice"=dword:00000000
"SetVisualStyle"=-[/font]
[FONT='Verdana','sans-serif'][HKEY_CURRENT_USER\Software\Microsoft\Windows\Curre ntVersion\Policies\ActiveDesktop]
"NoChangingWallPaper"=dword:00000000[/font]
[FONT='Verdana','sans-serif'][HKEY_CURRENT_USER\Software\Microsoft\Windows\Curre ntVersion\ThemeManager]
"ThemeActive"="1"
"DllName"=hex(2):25,00,53,00,79,00,73,00,74,00,65, 00,6d,00,52,00,6f,00,6f,00,\
74,00,25,00,5c,00,72,00,65,00,73,00,6f,00,75,00,72 ,00,63,00,65,00,73,00,5c,\
00,54,00,68,00,65,00,6d,00,65,00,73,00,5c,00,6c,00 ,75,00,6e,00,61,00,5c,00,\
6c,00,75,00,6e,00,61,00,2e,00,6d,00,73,00,73,00,74 ,00,79,00,6c,00,65,00,73,\
00,00,00
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