I applied screen saver and wallpaper through GPO

Did you correctly applied the GPO to the OU?
Seems like the GPO is not linked to the user/computer.

run gpresult on teh one of the target users and see if the policy is being applied

would be worth trying to run gpforce as well on the users if it hasnt applied

I created OU called 'teststaff' and added my user ID into it. I created GPO with the following settings: user configuration-administrative templates-desktop -active desktop: enable active desktop - enabled and active desktop wallpaper - enabled and provided link to the file like e:\gpfiles\Wallpaper1280x1024.jpg and style selected as center. Then for screen saver: user configuration-administrative templates-control panel-display: screensaver - enabled, screen saver executable name - enabled and provided link like e:\gpfiles\dcs.scr and screen saver timeout as 300 seconds. When I rerun gpresult, I can see that this GPO 'teststaff' is applied. But if I open 'local computer policy' using gpedit.msc, I cannot see of above settings applied there. All the settings appear as 'not configured'. But on the computer, wallpaper and screen saver are disabled and I cannot change those settings. It appears that GPO is applied, but files are not available to the computer. The path givenL e:\gpfiles\*.* is it OK?

the path you are giving for the files, do the users have access to it as if they dont then they wont be able to pull the screensaver, consider storing it locally

I cannot store locally for all the users. Please advise me.

Thanks slam69,
Now it is working fine. But the scr file is 2 MB. It runs slow from the network. Is ther any way to copy this file from network share to the users workstations and run from it.

I changed settings of GP implemented on OU called 'teststaff' to server share, where all the users have read permission. It works now fine except screen saver is slow in performance. Where do I see on client stations - these settings. If I run gpedit.msc, I cannot see these settings. What toll should I use to see the settings on GPO at client stations.

if you are running a proper domain structure you need to use the default domain policy to set policy on all workstations, ignore the local client as it will be over ridden by the default domain policy or the policies applied by yuourself centrally.

If you want to copy the file locally run a start up script on each machine to drag the file down locally then delete the script after a week to ensure your not constantly dragging a 2mb file down at start up

if you are ever unsure what policies are being implemented on teh lcoal clients run gpresult on them and have a look at what is beig applied

I can see what are GPOs applied using gpresult. This is good tool and I am never aware of it. But how can I see - what are the settings in the GPOs applied. I will tell you my problem - registry editing is prevented on all workstations. But I did not see any such setting on workstations and also on GPOs. Later I came to know that this setting is applied on one PC, image is created and all the workstations were built from this image. So all workstations, registry is disabled. How do I enable registry on all PCs.

do you mean for users or for local administrators? if you log onto the machines with local administrator accounts you should have access.

the policy that is being applied is

Prevent Access to Registry Editing Tools

and this is found in group policy object

User Config\Admin Templates\System\

For administrators. I am domain administrator. Still I cannot see any settings of GPO in local computer policy using gpedit.msc. All the configuration I made in GPO for wallpaper and screen saver, how can I see at local machine?

why do you need to as you can see them on the GPMC where you set the policies initially? you wouldnt see them on the local console only in gp result