shehzadguard, It's possible that Active Desktop is enabled. To Disable Active Desktop. Open the Control Panel.
Open Display Properties.
Click the Desktop tab.
Click the Customize Desktop button.
Click the Web tab in the Desktop Items window.
Make sure all checkboxes in this window are un-checked including My Current Homepage.
Restart your computer
I got a toshiba laptop with some malware problems. I fixed everything but the desktop properties. I cannot change my desktop background and the browse and position buttons do not work when in display properties. The selection of pictures/backgrounds has been grayed out. I have tried using customize desktop and restarting my pc, and have also tried the reg file from kellyskorner website and this has not worked. I hope that there is a simple solution for this frustrating problem.