all I know is, I can set a jpeg as a wallpaper using display properties, right-click set as wallpaper, whatever. it works. it didn't on 2000. and even though when it's set as a wallpaper, it's converted to bmp, well, that's irrelevant. being ABLE to choose a jpeg as a wallpaper, that's the issue. if the system converts it to bmp, that's fine. just so long as I don't have to :)