XP Wallpaper stays blue after spyware attack

I'm working on a cutomer's machine that had spyware shredder.. I ran Prevx, Ad-aware, spyware doctor, Avira anti-virus, Avast anti-virus, and ewido online scan for spyware. After all signs of the spyware were gone, the desktop wallpaper remained blue. Trying to change the desktop wallpaper or theme does nothing, it just reverts back to blue. I've done several google searches on this and came up with a few registry entries to change, but they didn't work. Anyone ever run into this?

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More about wallpaper stays blue spyware attack
  1. Try running SmitFraudFix in Safe Mode. It sets the background back to the default.

  2. Ok, I've done all that, and I've found that the problem is whenever I changed the registry key to "0" (for allow changing of wallpaper), everytime I reboot it has reverted back to a value of "1". I can't seem to find anything causing this. I've deleted the files in the prefetch folder, run all the anti-spyware programs I can find but not luck. Desktop remains blue and unchangeable.
  3. Did you run SmitFraudFix in Safe Mode and check for updates?

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