Yes, the same wallpaper can be placed on the desktop of each user.
But each user still has the same desktop.
Imagine the display has layers, Wallpaper is the background layer.
Each user has his own view of the foreground. Folders and shortcuts are objects in the foreground layer.
If two or more users wish to share objects in the same visual layer, they need to used the shared documents area.
In Windows 7, one my set a background image, color or pattern to appear as the background visual layer of a folder.
Windows 7 Folder Background Changer : Change Any Folder's Background & Text Color in Windows 7/VistaBut before you download anything:
https://www.youtube.com/watch?v=nMbmMVWtwQEIt is there in windows 7 already. No need to download.
It is not a new idea.
http://www.askvg.com/how-to-set-your-desired-wallpaper-as-folder-background-image-in-windows/Do you remember the good old days of Windows 98? In Windows 98, we could change the background color, background image, fonts, etc in any desired folder but this facility was removed from Windows XP. It was a good feature and many people still miss that feature in Windows XP.
So here we are posting 3 methods to set any desired wallpaper as background image of any folder in Windows XP
Pleas note I include links that ask you to download something. Please ignore the downloads. I put the links here for informational l value.