So you chose a Win 7 screensaver to use with your pictures, OK.
You could do with assistance from a regular Win 7 user, (obviously), but one or two basic things come to mind.
Can you reset your themes to the default theme and check the Photo Screensaver again.
"Note: Themes work a little differently in Windows 7. Whenever you change the theme, the new theme's settings will be applied to your desktop, including the screen saver. In some cases, the new theme might change your screen saver setting to None, and you'll need to reapply the screen saver settings you want."
It's probably too soon to think that the screensaver file (Photoscreensaver.scr) has been corrupted.
This is located in Windows\System32. If you can find another copy (probably in C:\Windows\winsxs\Backup
rename the original in System32 to Photoscreensaver.scr.old and copy the file from Backup to System32.
I reboot after any changes, whether or not it's strictly necessary.
I've always avoided 3rd party screensaver programs, others may have opinions for you.
Edited by petewills , 24 May 2011 - 11:28 PM.