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This won't fix the problem, but try this to see if it works. Save a picture to your desktop and then either two-finger tap it or right-click it (whichever fits your input mechanism) and select "Set Desktop Picture" to see if that will at least give you a new image to look at.
It occurs to me. I know what the issue is. A few weeks ago I messed up my OS and I ended up having to reinstall a lot of apps. iPhoto is one of them but I don't have the iLife USB drive so I had to copy the iPhoto app from my wife's laptop to mine. Is it possible to install iPhoto from the App Store or do I have to wait until I get back to America where my USB drive is?