Try this it might fix the Thumbnail problem.
Go to Start-> Control Panel -> Folder Options
Under the General tab make sure the "Show preview and filters" is checked.
Under the View tab make sure the "Always show icons, never thumbnails" is unchecked and the "Display file icon on thumbnails" is checked.
Check out the link below for fixing the desktop background.http://www.vistax64.com/tutorials/107383-d...ent-change.html
Edited by JNC86, 14 September 2010 - 04:08 PM.