also, i've had some really wierd problems with jpg wallpapers and litestep on win2k. i can surmise that either there was a problem with my active desktop or a problem with how litestep switches your background for certain themes.

in any case, switching to bmp wallpapers worked fine and is faster so i went to that.

edit - just read the post linked to here. yeah, saw the same thing. works fine in xp.