Weird problem with applying wallpapers ?

[Cti]

I can only apply .bmp wallpapers, well I try to apply a jpg nothing happens. I can convert the image to .bmp and it works fine ??

Kinda stumped, I looked through nlite but did not see anything eye catching, maybe a service ??

Thanks

[Ponch]

Is it not Fax and Picture Viewer that's needed for that ?

[Cti]

Is it not Fax and Picture Viewer that's needed for that ?

I am looking in nlite and I do not see that ?? NOTE: I am using a fresh copy of XP

I can list of what exactly is removed if needed

Thanks