Windows 7 and wallpaper folders

Had the same problem with not being able to browse for a different folder for background images. Turns out it happened after I removed the Pictures library. Simply using the 'Restore default libraries' command seemed to solve the problem.

"I just want to keep my photos in their original position
- I'm looking at the path: Control Panel\Appearance and Personalization\Personalization\Desktop Background

If you desire to keep your pictures where they are then consider adding directory to your photo library. (select the library, properties, include folder)
'Choose your desktop background', picture location: picture library (select pictures)
While, I still don't fully understand the Libraries, I am finding the concept more appealing as it allows me to keep a secondary structuring when booting an alternate OS.

But if you desire any of MS's released wallpaper packs, this might not be what you desire.

(How must it be before it is considered necromancy to reply to a question?)"