I am replying to my own question, as I got the answer by carefully reading Jermey's book.... Page 203 this is how it goes:
The idea is simple:
Create the BMP file as explained earlier, and store it once again, locally, as c:\ windows\background.bmp.
Create a new GPO on the Domain Controllers OU or on your own OU for your servers. Call the policy “Forced Background Wallpaper—Loopback Replace.”
Modify the User node of the policy as follows:
1. Drill down through User Configuration Policies Administrative Templates Desktop Active Desktop enable Active Desktop, and set Enabled.
2. Drill down through User Configuration Policies Administrative Templates Desktop Active Desktop Desktop Wallpaper, and set Enabled. Set the wall- paper name to c:\windows\background.bmp.
3. Drill down through User Node Administrative Templates Desktop Active Desktop Allow Only Bitmapped Wallpaper, and set Enabled.
4. To modify the Computer node of the policy, drill down through Computer Con- figuration Policies Administrative Templates System Group Policy and enable user Group Policy Loopback Processing Mode. Set to Loopback—Merge.
Now whenever anyone logs onto that server, they will get the exact same background BMP! This is still true even if they usually get a background dictated via some other Group Policy for their own personal account.
There is one more accompanying tip to seal the deal.
If you’ve enabled Terminal Services Administration mode, by default you cannot see the wallpaper when coming in over Terminal Services. Change the default behavior of Terminal Services by using the Terminal Services Configuration application, right-clicking the RDP protocol, and select- ing the Environment tab. Choose to view the wallpaper by deselecting the “Disable the Wallpaper” check box.
As I am using Remote Desktop Services I didn't have to configure the last step or right-clicking the RDP Protocol.
Thanks Jermey once again!!!
Regards,
Sahil


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