For those of you that this doesn't work for. Make sure that you are using a .JPG file for your background. Personally, I usually use .PNG's, and ran across this issue. When you use a .JPG or .BMP it seems to work just fine.
Ryan Thank you Ciscomonkey. I'd tried everything else to no avail. Then I found your comment and discovered that I had indeed been using a PNG file as the wallpaper.