This article was previously published under Q329677
After the user has viewed the Windows Welcome (also known as the "Out of Box Experience" or OOBE), the user may not see the OEM-customized desktop wallpaper background. The user may see only a plain desktop with icons displayed.
Note This problem occurs on Windows XP as follows:
This issue occurs on Windows XP Home Edition only if the customized wallpaper background is a JPEG (.jpg) file. Bitmap wallpaper files (.bmp) do not cause this problem.
This issue does not occur on Windows XP Professional Edition because the converted bitmap is stored in the Administrator profile directory. This directory is not deleted by Windows Welcome.
When the desktop wallpaper is customized, and if a JPEG file is used, the operating system converts the file to a bitmap file (.bmp), and then stores the bitmap file in the current user's profile directory. The wallpaper file is always named Wallpaper1.bmp.
In the Audit mode of Windows XP Home Edition, the file is stored in the following location:
%SystemDrive%\Documents and Settings\Owner\Local Settings\Application Data\Microsoft
During Windows Welcome (OOBE), the contents of the original Owner profile directory are propagated to a newly created Owner profile directory, and the original Owner account and profile directory are deleted. This is by design. However, because the registry is still pointing to the original Owner profile directory that no longer exists, the wallpaper is not displayed.
Important This section, method, or task contains steps that tell you how to modify the registry. However, serious problems might occur if you modify the registry incorrectly. Therefore, make sure that you follow these steps carefully. For added protection, back up the registry before you modify it. Then, you can restore the registry if a problem occurs. For more information about how to back up and restore the registry, click the following article number to view the article in the Microsoft Knowledge Base:
322756 How to back up and restore the registry in Windows
To work around this issue, use one of the following methods to modify the registry:
Method 1: Use Registry Editor.
Method 2: Use a registry file (listed later in this section).
Method 1: Use Registry Editor
After you apply the wallpaper that you want in Audit mode, and before you run Sysprep.exe in reseal mode, modify the following registry values:
Start Registry Editor (Regedit.exe).
Locate and then click the Wallpaper value under the following key in the registry:
On the Edit menu, click Modify, type the following, and then click OK:
Note Save the registry file as Fixwall.reg. By using the %USERPROFILE% environment variable in the registry entries, you make it possible for the OS to locate the file by evaluating the variable and then providing the correct profile directory path of the wallpaper bitmap file.
The registry file can be imported without user intervention from a batch file by using the following syntax (assuming that the registry file in this section was saved as Fixwall.reg):
regedit /s fixwall.reg
Microsoft has confirmed that this is a bug in the Microsoft products that are listed in the "Applies to" section.
Steps to Reproduce the Behavior
Install Microsoft Windows XP Home Edition by using the OEM Preinstallation Kit (OPK). After the installation is complete, the system is in Audit mode (the System Preparation Tool dialog box appears in upper right corner of the screen).
Change the desktop wallpaper. The wallpaper you choose must be a JPEG (.jpg) file.
Use the system preparation tool Reseal button to prepare the system and to run Windows Welcome (OOBE) the next time that the computer starts.
Start the computer, and then follow the prompts in the Windows Welcome (OOBE) wizard.
After the wizard is completed, the desktop appears. However, the selected wallpaper is not displayed.