Ok, you are all entirely on the wrong track. You are fixing the symptoms and not the problem.
Problem:
In Microsoft's infinite wisdom, Windows stores FOUR background images in the registry. Why? Because when they rolled out Internet Explorer 4 with Active Desktop, they didn't want to force you t use it, so they left the old key for the standard background image in:
HKEY_CURRENT_USER\Control Panel\Desktop
So they needed a new key for the Active Desktop wallpaper. In case Active Desktop doesn't load, or gets messed up (happens far too often) they defined a BackupWallpaper, (They could've used the already existing wallpaper I first mentioned, but they must make things big and complicated) both can be found here:
HKEY_CURRENT_USER\Software\Microsoft\Internet Explorer\Desktop\General
Wow, but the HK_Current_User section of the registry only applies AFTER you've logged in, or after windows has logged you in for you. Up until that time, it uses the background defined in:
HKEY_USERS\.DEFAULT\Control Panel\Desktop
If you're on Win9x, when prompted to login you can cancel it and go set the wallpaper, and that'll change the 'default' user's wallpaper. However, in Win2k, the simplest thing to do is probably to edit the registry yourself and fix the key appropriately.
Note: All keys are shown for Win2k, and not for Win9x. They should be close enough to figure it out.
So next time you go to change your wallpaper, thank Microsoft for making it so fun.