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I found a way to work around the issue. Open the Run box, (start key + R) and open the Local Group Policy Editor, gpedit.msc
Under User Configuration: go to Administrative Templates, Desktop and then click the Desktop folder. Open and enable the Enable Active Desktop. Then Open the Desktop Wallpaper and enable that as well. After you enable the Desktop Wallpaper, in the Options
box, type in the path to the image you want as your background. Apply and restart the computer. After restarting, I went back to personalize and just clicked on the wallpaper that you saved (it should show up) and then it should show up.
PS. I upgraded three computers (2 desktops, 1 laptop) to Windows 8 Pro and only had this issue on one desktop.
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