Found this on the Internet. Looked at a lot of fixes and this is the only one that helped me. If you can’t change the background screen on XP because everything is grayed out this. Suggest backing up the Registry first. Here is a great utility for this. Then try the following:
Make a registry edit (backup each registry key before deleting each value)
Delete the value named “NoChangingWallPaper” from these two registry keys
HKCU\Software\Microsoft\Windows\CurrentVersion\Pol icies\ActiveDesktop
and/or
HKLM\Software\Microsoft\Windows\CurrentVersion\Pol icies\ActiveDesktop
Delete any default wallpaper value set in this key (if it does already exist)
HKCU\Software\Policies\Microsoft\Windows\System
HKCU\Software\Microsoft\Windows\CurrentVersion\Pol icies\System
Delete these two values named “Wallpaper” and “WallpaperStyle” (if it does exist)
HKEY_USERS\.DEFAULT\Control Panel\Desktop
Modify the value data of the value named “Wallpaper”
from whatever value you’re now having to “(None)”
(if it does exist)
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