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Microsoft Windows XP is the sixth release of the NT series of operating systems, and was the first to be marketed in a variety of editions: XP Home and XP Professional, designed for business and power users. The advanced features in XP Professional are generally disabled in Home Edition, but are there and can be activated. There were two 64-bit editions, an embedded edition and a tablet edition.
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If I remember right you can go for a Desktop Wallpaper in Windows 2000 only if you also enable Active Desktop by going to this path in GPO
User Configuration --> Administrative Templates --> Active Desktop
[ Enable Active Desktop | Active Desktop Wallpaper ]
You need to check that too
Thanks
Nitin