I didn’t have this issue until I patched my installation with the latest updates.
You need to set the user to SYSTEM for your tasks, set privileges to highest, and then create the Desktop directory in the SYSTEM’s profile directory. The following directories need to be created:
C:\Windows\System32\config\systemprofile\Desktop C:\Windows\SysWOW64\config\systemprofile\Desktop
Make sure the directories are created under the Administrator account. I also read this problem exists under Windows 2008 Server, but I have yet to encounter this issue in that environment.