Restore Active Desktop not working

Appreciate your response John.The problem is that I can't or don't know how to recycle the desktop off and on... or I have and didn't know I did that. My buttons are grayed out in the Desktop Properties window for background. No I'm not still infected. Am running LanDeskAV, AdBlock Pro and AVG so hesitate to install and run another AV program. BTW, my op sys is XP Pro SP1 &2. AVG Full scans have been running daily since the infection and active website & email monitoring is always on.

I also ran wallpaperviews.vbs and that made no difference. I attached a HiJackThis log from this morning. I have logged on as Administrator rather than my normal Lan log-on and the screen remains with the un-usable Restore Your Active Desktop screen in place.

This particular Trojan I got seems to be a variant or mutant of that awful System-Defender that still makes the rounds. I'm sure you know of that one that mimics the look and feel of Windows Defender. I strongly suspect that part of that series of Trojans resides in the QuickStart or Tray components. I will log in Safe Mode again later today. I rarely get much un-interrupted time to dedicate to computer maintenance and that is not where my expertise is.

I wonder how the Restore Active Desktop utility can get corrupt and why it is not self-correcting as I've read that it is supposed to be? Thanks for alt suggestions.  
hijackthis1-7-09.log

Ok, I found the correct file to change after some research as well as reliable assistance from my Sys Admin. Deleting the Desktop.htt file did not work because on re-boot my system just pulled the old corrupt one from the server when it access my profile startup. I learned that *.htt stands for 'HyperText Template. The correct process for my system was from safe mode as administrator.
I did this:
Run - regedit . Find this entry - HKEY_CURRENT_USER\Software\Microsoft\Internet Explorer\Desktop\SafeMode\Components Change the key value - DeskHtmlVersion REG_DWORD 0x00000110(272) to decimal zero Close regedit - Logged off and logged back on. The faulty desktop screen was gone.

Should John get the points just because he was the only one to answer? I think so even though his suggextion was only slightly helpful. My 7-day trial will end tomorrow and I am doubtful about having yet another company doing automatic deductions from my account. I am very new to your site and not at all familiar with your protocalls. Advise please before I cannot access the question anymore. I'm going to add this one to the Knowledge base later also since I saw no similar solution in my search here.

John did not actually provide the solution but what he wrote prompted me to investigate further. The actual solution for my unique system is contained in my own post.

My actual solution is contained in one of my response posts to John. I have a rather unique server/workstation/profiles set-up and I suspect he and I would have gotten to the solution eventually and without the needed input from my Sys Admin. Thanks John.

Anytime!!