Background will not change from solid colour -HELP

Ok Brand new (unpacked yesterday) Inspiron 15R Laptop. Running Windows 7. Went to change desktop back ground - error

will only change to solid colour - defaulting to black if I try to choose any 'theme'. None of these display options work. I am unable to change to a 'Theme' or even set a photo as background. In fact it will not even go back to the 'Dell' blue swirly background it came with.

Someone- anyone have I just got a dud or is this fixable.