I have tried to deploy wallpaper with active directory and it seems everything is working, up until the point where the image seems to have permission issues. At first I thought it was the image, but I've tried multiple BMP/JPGs.
Instead of using a shared path, I wanted to push the file to all machines, so in my GPO, to copy the image from the shared folder, I copied it with: Computer Configuration/Preferences/Windows Settings/Files
On the Shared Folder (and originating machines), the permissions look like this:
But when it gets copied from the Shared Drive, it ends up getting these permissions:
The wallpaper seems to deploy with a black screen either way, even though if you go into the system customization, the correct image is in the icon. Using Windows Server 2008 R2 SP1 w/Windows 7 Machines. I'm aware that there is a hotfix, but I'm using Service Pack 1, so I don't think the bug I read about applies.