Okay, let's see if I can still remember my topic correctly:

1. When I go to Desktop Wallpaper in the right click menu, I click on my second monitor (in my case, my right monitor) and I want to use a different wallpaper on that one than on my first monitor (the left one), however when I apply it, the wallpaper of my first monitor becomes a dark blue color because this is the default setting in the Desktop Wallpaper dialogue. I think it's best to use the user's current wallpapers as the default and only change those things the users wants to change. In other words, when I choose a different wallpaper for my second monitor I want the wallpaper of my first monitor to be left untouched and unchanged, and not turn it into a dark blue color when I apply the settings.

2. I chose a different wallpaper for my second monitor and applied the settings. After that I deleted the wallpaper and went to the Desktop Wallpaper dialogue again. It then gave me prompt which said it couldn't find the original .jpg I used as the wallpaper, after that I changed nothing in the dialogue and just clicked 'cancel' (which still lets me keep the wallpaper even though I deleted it, it's probably in a cache somewhere, that's not the problem) however when I go to the Desktop Wallpaper dialogue again, it gives me the exact same prompt again, I then change nothing again, click cancel, and go to the Desktop Wallpaper again and it just goes on and on. My idea was that when the user deletes the wallpaper and goes to the Desktop Wallpaper dialogue, it should give the prompt only once (or twice, depending on how many monitors were using the wallpaper) and after that just change the wallpapers back to wallpaper the user had as default. So if I had the Windows wallpaper as a default, then changed it to "Blablabla.jpg", then deleted that .jpg and go to the dialogue again, it should prompt me, notify me the .jpg has been deleted and revert back to the default wallpaper the user previously had set.

This is because DF pulls your wallpapers of choice, makes one large (wide) one and stores it in your user directory ("C:\Documents and Settings\YOURLOGON\Application Data\Binary Fortress Software\DisplayFusion\DisplayFusionWallpaper_1.bmp". Each time you open the dialog box it errors because you removed the original picture. Pick a different wallpaper once and the error will go away. (you've told DF to check for this wallpaper and then removed it, so you've confused it)