Hi,
I am on Fedora Core 5 with KDE 3.5.4 and can reproduce the problem on two PCs. I am not running a english desktop, so I am sorry, that my "translation" of the items might be different in the orginal.
If I am right click on the desktop, selecting Configure Desktop, I am able to set up a different background image. However, if I move with konqueror to a folder with pictures and right click on one, selection Action->Set as wallpaper->center, the desktop turns blue, but no picture is chown.
I have no real idea, what might be the problem. I am quite sure, that it worked with 3.5.3. Can anybody reproduce this or having an idea, how to fix this?
Thanks in advise