Look for bliss.jp_ You can make such files with makecab command.

Yeah thats cool & have done that but it does not appear as default as a normal installation of XP would?

It would appear as a default walpapere unless

[shell]

DefaultThemesOff = Yes

I hope it answers you question. Otherwise, clarify it.

Im sorry VAD thats not apparent in my Winnit.sif nor in NLite.

You see... I've never used nLite. I know what it is, but prefer to build everything manually (or with XPCreate, if I need to integrate the hotfixes). Hence, I doubt I can successfully troubleshoot this problem. There are multiple ways to install your own wallpaper by default. I use

makecab <path to>bliss.jpg

to obtain bliss.jp_ and copy it to i386. If I want a custom theme, I place its files in $OEM$ and use winnt.sif

[shell]

CustomDefaultThemeFile="%Systemroot%\Resources\Themes\mytheme.theme"

No worries. I will manually give that a go. But I do not understand why my make cabbed modified Bliss wallpaper is not coming up after first reboot by default. Works perfectly if manually selected anyway.

did you happen to check in the CAB files?

Shoot....I forgot all about them, LOL....I'll bet that's where is is.....