Wallpaper not showing up on XP

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I just got a new PC and so I reinstalled Windows XP and all the upgrades (including SP2). Everything is fine, except for this bug where everytime I reboot, the wallpaper I had selected won't show up anymore.

I still see it under screen properties > desktop , but it's actually like it's hiding behind the desktop.

Does anyone know anything about this bug and how to fix it?
 
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