I can no longer see any jpegs for Desktop Backgrounds under the Desktop Tab of Display Properties and the Web Tab is missing under Desktop Items.
These are the current entries from the Registry.
If I change NoActiveDesktop to 0 under LOCAL_MACHINE, I can see jpegs under the Desktop Tab and the Web Tab reappears. But if I reboot, the value gets reset to 1.
If I delete the NoActiveDesktop key under LOCAL_MACHINE, again I can see jpegs under the Desktop Tab and the Web Tab reappears. But if I reboot, the NoActiveDesktop key under LOCAL_MACHINE gets re-created with a value 1. And, I'm back to where I was not being able to see any JPEGS for desktop backgrounds under the Desktop Tab.