MichaeljBrooks
I had exactly the same problem as you, my Windows XP background was just blue and the desktop icons and task bars would not apppear. Left this for a while too.
I booted into 'safe mode' and un-installed Windows XP Service Pack 2.
My windows installation is working ok now, but Service Pack 2 left some problems with the taskbar that I think I have now sorted.
Not ready for release...