[MTUSUPPORT]

Tymzend,
If you are getting the Blue background when the computer actually comes into Windows, is this what you see on your computer monitor also, minus the Icons? If so then this part is working. Try setting a Desktop Image, by Right clicking on the Desktop, where there is no icon, left click Properties. Then left click on the Desktop tab. Here select on of the Backgrounds. Then click Apply. It should now show this picture on the Desktop, with all your Icons on top of it. It should only show this image on the TV, with No icons.

Is this working? If it is then we might need to delete some Registry Keys that got messed up under Hoster in the Registry.