I am trying to deploy a wallpaper through a GPO. I created a test ou and placed a user in it. The ou has "block policy inheritance" checked. The settings are under user config->Admin templates->desktop->active desktop. "enable ad" is enabled; "active desktop wallpaper" is enabled with the wallpaper path: c:\winnt\***.jpg. Also tried other wallpapers with a path of c:\winnt\***.bmp. The result is always the picture on the left side of the user's desktop and the IE home page on the right side of the desktop.