MS Windows Vista and Windows 7 Video Wallpaper Guide
Windows 7 & Vista do not support Adobe SWF Flash Animated Wallpapers, but.. ! Do you know that, you can play looped video as wallpaper on your Microsoft Windows Vista Home Premium or Windows 7 version, or even on Windows XP? All you need to do is converting SWF Adobe Flash files to an AVI/MPEG/MPG or other popular video format.
step 1. Download SWF file
Download & unzip a wallpaper zip file to your computer.
step 2. Convert SWF to Video
Download and install free SWF to Video Converter to your computer. You may use Sothink SWF converter below or other video converting software to convert SWF to video. Sothink SWF video converter supports Flash movies in Adobe Flash V6, V7 (MX), V8 (MX 2004) and V9 (CS3)

step 3. Set looped Video as Wallpaper
Download and install free VLC Media Player below to your computer.

Open any video file in VLC Media Player. Right click on the video and click on "Wallpaper".
You have animated desktop wallpaper now!
Do not forget to loop your video file. VLC Media Player supports the following video files: ASF, AVI, FLV, MP4, MJPEG, MPEG-1, MPEG-2, MPEG-4 (ES, PS, TS, PVA, MP3), FLAC, QuickTime
If don't see the wallpaper option: Settings > Preferences > Video > Output Modules > Direct X. Check the Advanced Options box in the bottom right hand corner. Check Enable Wallpaper Mode. Now when you right click on your videos, you should be able to see a Wallpaper option.
Video Looping: Settings > Preferences > Playlist >Repeat All. For removing VLC from the taskbar go: Settings > Preferences -> Interface -> Main Interface -> wxWidgets and uncheck Taskbar and enable Systray icon.
Thank you!
FYI - If you have problems with your flash desktop, you might try changing your Internet security option.
How to make animated wallpaper foe MS Vista, Windows 7
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