n an Active Directory domain network environment, you apply a “Desktop Wallpaper” Group Policy setting to the domain users. However, the setting is not applied to domain users who log on to client computers that are running Windows 7 or Windows Server 2008 R2.

This issue varies if the following conditions are true:

• If the domain user logs on the domain after you deploy the “Desktop Wallpaper” Group Policy setting, the desktop background changes to black.
  Note The color of the desktop background varies, depending on the color scheme that you set.
• If the domain user logs on the domain before you apply the “Desktop Wallpaper” Group Policy setting, the desktop background does not change.

Additionally, in the Personalization window of the client computer, the desktop background is displayed as being changed to the setting that you applied.

Hotfix Download Available

windows 7 / windows 2008 R2 x64

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windows 7 / windows 2008 R2 x86

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Tech Doc source
http://support.microsoft.com/kb/977944