Display Properties - Desktop - Backgrount grayed out

All versions of Windows Win95, Win98, ME, W2k, XP

Delete the following registry key

HKLM\SOFTWARE\Software\Microsoft\Windows\CurrentVersion\Policies\System\
Key Name: Wallpaper

Key Name: WallpaperStyle  (I rarely see this one)

Just in case you should check:   If you find it here you should check all the different users.

HKCU\SOFTWARE\Software\Microsoft\Windows\CurrentVersion\Policies\System\
Key Name: Wallpaper

Key Name: WallpaperStyle  (I rarely see this one)