hi Brink, I followed your steps but I have the following issues:
1) the "Change screen saver" link is not present in the left pane of Control Panel/Display
2) I was able to check the "On resume display logon screen" checkbox under "Screen Saver Settings"
3) A "Merge" option is not present in the display menu when right clicking the reg file in the Desktop
My user account is set to Administrator with full privileges and I set a log on screen password in my User Account. However the screensavers do not prompt for a password when resuming, even when the step 2 above was successful.
Any suggestion? Thanks
UPDATE: I was able to open the reg file using "Open with.." and selecting "Registry Editor" and it was merged, however the "Merge" option is not present as stated before. I rebooted and now the screensaver is password protected upon resume as desired, however the option to "On resume display logon screen" is grayed out.