Setting Wallpaper on Windows Server 2003

I am trying to set up a default wallpaper for all users when they use Remote Desktop to log into the Server. I went through GPEDIT.MSC under User Configuration –> Administrative Templates–> Desktop–> Active Desktop–> Active Desktop Wallpaper

I enabled it and set the location of the picture. When I log on as any user the image does not display as the wallpaper. When I click on the Display properties under Desktop it shows the image as the wallpaper but it is not being displayed. I am able to get to the image so it is not that. What could I be missing?