If, like me, you have disabled Windows 7's "Libraries" feature, you may have later found that you are unable to add "Picture Locations" for your desktop wallpaper.

You click on "browse" and choose a valid folder, but nothing happens when you click "OK".

Fortunately, contrary to some suggestions, you don't have to workaround it by manually copying your desired wallpaper into a default folder.

The fix is to:

The new picture locations will remain even after Libraries have been re-disabled.