Group policy wallpaper not working for non-admin accounts

We have a special image that I am required to have on all PC's at my job and I usually just enable the desktop wallpaper in group policy and point it to the path. This has worked for as long as I can remember.

In windows 7 group policy editor, I set the desktop wallpaper in:
User Configuration
Admin Templates
Desktop
Desktop
Desktop Wallpaper

I set it to the local path where the rest of the desktop wallpapers are stored C:\Windows\Web\Wallpaper\XXXX.jpg

I did this while logged in as Administrator. It shows up under the Administrator account but it does not show under the other 2 accounts on the machine. Yet the other changes I set in the policy work under the other 2 accounts. The weird thing is, as I logoff these other account, the picture I set will flash for a second on the screen, then the account logs out.

I have done this countless times on machines without issue, I don't know what is happening. I even reloaded the machine just in case and it still is doing it.

I checked all over the registry where it relates to wallpaper and the correct path to the image is shown. I really don't know what is happening. The only way I can make the image stay is to log into each account and pick the image manualy which gets time consuming when I am loading a ton of PC's.

Any ideas? I have deleted and recreated the users, same deal.

Thanks Shawn I will try this tomorrow!

This did not work, I have tried everything, it doesn't make sense. I have it set in the registry and in group policy, pointing to the path where the picture resides. I even tried putting it in the public pics folder and changing the path but still no luck.

This one has me scratching my head

Especially since it works for Admin, and the pic flashes when I logoff the other accounts. If I set the desktop background manually in each account, it accepts it and shows up, but then does not show up when I logout and log back in.

This actually happened to me on another laptop yesterday as well. Any other ideas?

I tried that too, no luck on any of the accounts.

Here is something strange... I have been loading the OS from discs I was left from the prev IT guy. I usually use the Win 7 Enterprise 64 SP1 disc since it was the most up to date. I installed from a different disc and this is happening (32 bit on a couple computers and 64 on another but from a different disc).

Today I found my original disc and installed on the same PC I was having errors with... it works, the images come up fine on all accounts when I set from Group Policy. Weird! I don't know what could be different. Perhaps these discs were images created by the prev IT guy with WAIK or something that had specific settings? I am not very familiar with WAIK so I can not be sure.

I'm thinking that is what it had to be. I know the guy made some unsuccessful images as I have encountered a few he setup for Vista that don't deploy right. For now I am good though... lost some hours on this one though!!

I know this is an old thread but anyone have any solutions? I am running into the same thing. Wallpaper works for admin account but non-admins have a black wallpaper. I have tried different locations for the picture (all are shared).