Won't display desktop image wallpaper

[Daryll]

I have Vista home basic with nvidia geforce 6100 nforce 405 integrated display adapter.
I had on great wallpaper before this, now I cannot display anything but wallpaper colors. If I click on "show thumbnails instead of icons" in visual effects, I only get white folders with tiny icons of folders within....on most folders, but not all.
I have changed the theme to windows classic etc. and still cannot get images.
Have also changed the graphic card drivers..to no avail.
Gone to Ctrl panel, ease of access, optimize visual display, remove background images was not checked, checked it tried the images and unchecked it and still no images.
Unchecked all of the checks in msconfig, restarted, no luck. Tried safe mode and no difference.
Ran AVG and online Kaspersky and no infections. Hijackthis is fine. Malware bytes and Trojan Hunter as well, no infections.
Logged on as different users, same thing.
Also tried restore last know good configuration...no difference.

I was considering a repair install. But with sp1 in it is impossible, I can do a repair install upgrade on the original Vista and will probably have to wait for sp2 to do a repair install.
I have asked this question on numerous sites and have had absolutely no resolution.Does anyone have any other ideas ?

[shadowpr]

So when you right click your desktop, and choose personalize, and then choose desktop background, what do you see?

Are you trying to use your own personal files, or the ones supplied with vista?

[Planefreak]

Are you sure that have a wallpaper setup?