Cannot change desktop background in Windows 7 Home Premium

Are you trying this way no?

Default location of Windows 7 wallpaper:

Windows 7 is come with some very nice default wallpapers. These wallpapers are really nic. The default Windows 7 wallpaper images are located at:

C:\Windows\Web\Wallpaper

If your operating system is located other than C drive then the default location is just changes with drive name. For example:

If your Windows 7 is installed in D partition of your hard disk, then the default location of Windows 7 wallpapers is:  D:\Windows\Web\Wallpaper

If your Windows 7 is installed in E partition of your hard disk, then the default location of Windows 7 wallpapers is:  E:\Windows\Web\Wallpaper

Steps to change Windows 7 desktop background

Step 1: Right-click on the empty space on Windows 7 desktop and click on Personalize option.

Step 2: Now, click on Desktpop Background link at the bottom of the windows.

Step 3: After the above steps, a new window will be opened. In this windwod, you will find several nice wallpapers. To choose any wallpaper, just click on any wallpaper and that wallpaper will be set for your desktop background. If you want to set other image as your default background, then click on Browse button and browse to your favourite image location and select that image.

Step 5: After selecting the image for your desktop background, click on Save changes button.

I have the same issue. I upgraded my Windows 7 starter to Windows Home Premium on my netbook and all was working well. I could select themes from the personalized option and they would change instantly (including the theme desktop pic). A day later and now when i select a theme the Windows colour and sounds will change but not the desktop pic. The pic is just stuck on a landsacpe image i had selected the day before. There is no error message. No matter what picture i select for the desktop and save, it still just stays on the same pic. I have tried aero themes, basic themes, just changing the desktop background on its own - nothing will change the current background picture. Very odd - please help

http://www.withinwindows.com/2009/10/20/hp-and-stardock-team-up-to-ship-netbooks-with-custom-wallpaper-themes/ 

Try this:

1. Open the control panel and type "experience" into the search box. One of the options should be "Check the Windows Experience Index'. Click on that, and make sure your video score is higher than 3. If any are blank, you've never seen this screen before, or you've upgraded your video drivers since installing windows then click on Refresh Now and let it do its thing.
2. Now type "glass" into the search box at the top right corner of the control panel. Select "Change Windows Glass Colours" or "Enable or disable transparent glass on windows" - they both bring you to the same screen. Make sure that enable transparency is selected. This is also where you can pick eggplant or whatever.
3. Now right click on the task bar beside your icons, and pick properties. At the very bottom of the taskbar tab is a check box for aero peek. Turn it on if you want the previews for your windows when you move your curser over the icons. I believe this requires the newer style taskbar though, so if you've changed it to the old style it won't work.

If none of that is what your looking for, go back to the windows experience index page. On the left hand side there should be an option 'Adjust visual effects', this lets you manually choose animations. Aero Peek and transparency can also be activated from this menu.

Hope some of this helps!

If I select a new desktop background, the button at the bottom doesn't say "Save Changes", it just says "OK" and when I click on "OK", it just goes back to whatever background it had originally.  I don't get any error messages.