But if this was my job I'd examine permissions of that folder for a start.
I created a new image using Win XP Pro (32bit)and made my profile the default user profile on a stand alone computer. My profile includes our company logo as the desktop background. My user account has full admin rights. When a user with non-admin rights logs in - the logo does not appear as the desktop background. When I go to display properties and click on desktop, the company logo is selected as the background. The apply button is greyed out but once I hit OK the logo appears on the desktop. The logo remains for the user even after logging off or rebooting the pc. However, if I delete the user's profile and they log back in the logo disappears once again.
Any user account with admin rights sees the logo, those without admin rights don't. The logo file is a .jpg and it's stored in C:\WINDOWS\Web\Wallpaper.
Any idea how I can get the logo to show up for all users?