I have 2 problems in our Zen 6.5 and XP SP1a environment. Any ideas are

#1: Using zen group policies to force windows classic view and a jpg
wallpaper. Windows classic works, but jpg is not displaying on desktop.
Active desktop is enabled and I am calling the file from
c:\windows\web\wallpaper. If you bring up display properties, you see the
background on the themes tab ("modified theme"), but when you click ok it
doesn't change the background. So it's there, but not applying.

#2: Windows XP user profiles are caching on local drive. We have DLU
turned on and volatile user checked. I also have "delete cached copies of
profiles" turned on in the zen group policy.

Thanks in advance for your help.