I had already ran sfc and it found nothing wrong. I have ran tons of checks
for viruses and malware and there are none. The only change was installing
SP1. I have uninstalled it, no change, reinstalled it and no change.

"Bob" wrote:
[color=blue]
> Run sfc /scannow.
>
> If no joy:
>
> Do a thorough check for malware, following all of the steps at one of these
> Web pages.
> Help with malware:
> All MS-MVP Sites.
> Consider this: Whenever a new error condition appears on your computer, it
> is almost certain that there was some change to the computer soon before the
> problem began.
> [url]http://aumha.org/a/parasite.htm[/url]
> Unexplained computer behavior may be caused by deceptive software.
> [url]http://support.microsoft.com/kb/827315[/url]
> [url]http://aumha.org/a/quickfix.htm[/url]
> [url]http://www.elephantboycomputers.com/page2.html#Removing_Malware[/url]
> [url]http://mvps.org/winhelp2002/unwanted.htm[/url]
> [url]http://inetexplorer.mvps.org/darnit.html[/url]
> [url]http://www.mvps.org/sramesh2k/Malware_Defence.htm[/url]
> [url]http://aumha.org/a/parasite.php[/url]
>
> Unexplained computer behavior may be caused by deceptive software.
> [url]http://support.microsoft.com/kb/827315[/url]
>
> So How Did I Get Infected Anyway?
> For quite a few people it's by installing programs like Messenger Plus,
> whose ads for malware don't identify the malware as such and try to convince
> you that you owe it to the author. See also:
> [url]http://www.wilderssecurity.com/showthread.php?t=27971[/url]
>
> Don't ever do a "default" install of anything. Always choose Custom and see
> what else is
> being carried along. Don't install any extras you're not sure of.
> -------
> *Report back, please*
> [When responding to posts, please include the post(s) you are replying to so
> that others may learn and benefit from the issue]
>
> [How to ask a question]
> [url]http://support.microsoft.com/kb/555375[/url]
>
> "Chris" <Chris@discussions.microsoft.com> wrote in message
> news:343A4B01-7767-4BA7-B782-D18556890340@microsoft.com...[color=green]
> >I have the same problem and posted the thread below on 3/31 and no one
> > responded. As you will notice my post contains screenshots showing the
> > picture thumbnails missing. System restore is diabled on my PC so it is
> > not
> > an option. Any ideas for me?
> >
> > I know there have been many posts about this issue and I have followed all
> > of
> > the threads and none of them have fixed my problem. I am running Business
> > Edition and installed SP1 on 3/26 and the problem started yesterday 3/30.
> > I
> > have looked in the registry for the entries that appear to cause the
> > problem
> > and they are not there. I also ran the wallpaper_enable.reg file and I do
> > not
> > see the entries then either. This computer is on a domain so maybe the
> > policies are not the same in the registry? When I open the desktop
> > background
> > dialog the thumbnails for the wallpapers are not shown. Another thing that
> > started happening at the same time is when I look in my, my pictures
> > folder I
> > do not see the thumbnails in there. I can see the file names and I can
> > open
> > the pictures but I cannot see the thumbnails unless I change the view.
> > After
> > I change the view I can change it to any other view and see them ok. If I
> > hover over where the thumbnails should be it turns blue so I know it is
> > there. I am posting a couple of links below that are screenshots of what I
> > see. Thanks in advance for any help.
> >
> > [url]http://sportcompactcentral.com/wallpaper.jpg[/url]
> > [url]http://sportcompactcentral.com/pictures.jpg[/url]
> >
> >
> > "Bob" wrote:
> >[color=darkred]
> >>
> >> Try System Restore in Safe Mode.
> >> -------
> >> *Report back, please*
> >> [When responding to posts, please include the post(s) you are replying to
> >> so
> >> that others may learn and benefit from the issue]
> >>
> >> [How to ask a question]
> >> [url]http://support.microsoft.com/kb/555375[/url]
> >>
> >> "Catti" <Catti@discussions.microsoft.com> wrote in message
> >> news:EE702C3B-4DCF-4492-9659-11280858472B@microsoft.com...
> >> > Display settings were the first thing I checked, they're at 32-bit. I
> >> > even
> >> > tried deleting the Pictures folder where I was storing the pics I was
> >> > using
> >> > for wallpaper (under my user account) and recreating it, then copying
> >> > the
> >> > pics back into the folder. Now I can't even view them as thumbnails in
> >> > Windows Explorer, I just get clear box icons. I can still view picture
> >> > thumbnails in other folders in Win Explorer. I still get the messed-up
> >> > icons
> >> > when I try to access the Windows desktop pics as well.
> >> >
> >> > I tried a System Restore - "Unspecified error" and it failed. Even when
> >> > I
> >> > tried to undo, Unspecified error again. The only other thing I can
> >> > think
> >> > of
> >> > is nuke and pave, reinstall the OS, but since it's taken me nearly a
> >> > month
> >> > to
> >> > tweak this crappy OS so I can use it for my work.
> >> >
> >> > I'm going home to my mac OSX now. It hasn't crashed or bugged once
> >> > since I
> >> > installed it in 2005. And that's the OS that M$ tried (and failed
> >> > miserably)
> >> > to copy with Vista. While I'm on there I'll be signing that petition
> >> > online
> >> > asking MS to keep supporting XP. My company sure won't be adopting
> >> > Vista
> >> > any
> >> > time soon, thanks to the results of my testing so far.
> >> >
> >> > Thanks anyway...
> >> >
> >> > "Jane C" wrote:
> >> >
> >> >> Hello Catti,
> >> >>
> >> >> Check that you have the colour depth set to 32 bit via
> >> >> Personalization,
> >> >> Display Settings.
> >> >
> >>
> >>[/color][/color]
>
>[/color]