One issue with IE7 is that in some cases, you might be trying to set an image as a wallpaper, and the option “Set as Background” might be greyed out. If that’s the case, you’ll need to do a Registry edit. First back up the Registry, then navigate to
HKEY_CURRENT_USER\Software\Microsoft\Windows\CurrentVersion\Policies\ActiveDesktop
Locate the entry called NoChangingWallpaper, and change that DWORD value to 0.
