Selecting pictures for my desktop background, it doesnt work!

I used to be able to select what my desktop background was by right clicking the desktop, going to "properties", then "desktop", then selecting the picture (my choices were all in the My Pictures folder)

Now, my only options for backgrounds are the ones that originally came with windows! If i want to use a picture i saved, I have to go to My Pictures, and set the picture as the desktop background.

Its not a detrimental problem, but it would be much easier if all of the pictures in the My Pictures folder were listed in Desktop Properties like they used to be.

If anybody has any idea how to fix this, any help would be greatly appereciated. Thanks in advance!