here's a solution i came up with
ok there buddy
the whole change display may be a solution, but it is a band-aid solution nevertheless.
What you have here is a nasty little trojan, it modifies your desktop, replaces it with a newly created one eg. desktop.html or C:\desktop (notice how it's different from c:\documents and settings\user\Desktop)
this little bugger also modifies your regedit in reference to your disabled right mouseclick options. lastly, it disables your ability to change the background wallpaper. One must also not forget that a keylogger/pw stealer is usually attached with this bug.
Run a virus scan using Trend microsystems, Panda Software, and etc. Do this in safemode and make sure you disable system restore.
you'll need these programs: Cleanup! v3.1, Pocket Killbox, HJT, CWS, Spysubtract, Spybot search and destroy, and Lavasoft.
run the antispyware programs and virus scanners in safe mode. When they ask for a reboot make sure you boot into safe mode again.
Once you're done that reboot in safe mode, run Hijackthis. make note of the "odd" files. those tend to be bad. remove them. if you can't move to the next step run Cleanup!
Let Cleanup! finish, reboot into safemode again, run it again to finish up it's final processes. Once that is done, remember the files you couldn't delete? Run Killbox.
In Killbox, you'll have to manually input each individual file. type in the directory of the file (in my case it was vdm32, mszx23.exe, pa.ad3, p2.ini etc....) check off the "remove from registry" option and the "delete on reboot" option. now you click the delete option, it will ask u if you are sure, click yes, then it will ask if you want to reboot: if you have not finished inputing the names of the files, press no to continue inputing more files. if you've finished click yes to reboot.
reboot into safemode again. run HJT and all the antispyware, antivirus programs. you should be clear of the virus.
now on to the registry: remember don't mess around with it, consequences can be astronomical!
open regedit in Start>Run>Regedit
find the NoViewContextMenu using Ctrl-F
double click NoViewContextMenu and enter 0 for its value
Value Name: NoViewContextMenu
Data Type: REG_DWORD (DWORD Value)
Value Data: (0 = disabled, 1 = enabled)
as for your missing desktop, in regedit look for all instances of
and replace with
c:\documents and settings\user\Desktop *
*note user would be the name of the user it can be Bob, Jane Etc.. in short it's the name of the account
hope that helps, it worked for me, only thing i'm trying to figure out is re-enabling the wallpapers