In in Microsoft Windows XP Embedded Service Pack 1, or in Windows XP Embedded Service Pack 2, you open the Display Properties dialog box. In the Background list, you click Bliss or Windows XP. However, a preview of the image does not appear in the preview area. Additionally, if you click OK or Apply, the desktop background does not change.
This issue occurs because Bliss (Bliss.bmp) and Windows XP (Windows XP.bmp) are not automatically included in Windows XP Embedded. If the bliss.bmp and the Windows XP.bmp files are created by building the Images and Media component, these desktop images do not function correctly. When the Images and Media component is built, each bitmap file is created by using .jpg files in the repository that have the same names as the bitmap files. However, because these .bmp files are not successfully created, the images cannot be set as the desktop background.
To resolve this issue, follow these steps:
In the repository, double-click Bliss.jpg to open the file in Windows Picture and Fax Viewer.
Save the file to a different location. Save the file as Bliss.bmp.
Remove the following files:
System Drive\Web\Wallpaper\Windows XP.bmp
Copy the Bliss.bmp file that you saved in step 2 to the following location:
Click Start, click Run, type desk.cpl, and then click Display.
Click the Desktop tab.
In the Background list, click Bliss.bmp, and then click OK.
Note You do not have to create the Windows XP.bmp file.
Microsoft has confirmed that this is a bug in the Microsoft products that are listed in the "Applies to" section.