It looks like you may have an orphend wallpaper that is assigned to this user. Is this user part of any group/device address/device names/OU that is setup in vWorkspace. If so assign a wallpaper to this group and unassign it. This should get ride of the orphend wallpaper.
I cannot seem to get any shortcuts created. I have run pnshell with the /log /trace switches and this is the result.  Can anyone shed some light on this please.  Thanks  08-Jun-2011 23:48:31 - 3660 : 1612 - CShellConfigFile - Could not open xml file! Xml file name:  08-Jun-2011 23:48:31 - 3660 : 1612 - C:\ProgramData\Quest Software\vWorkspace\ShellResources.xml.old. 08-Jun-2011 23:48:31 - 3660 : 1612 - PNShell.cpp - Reading contents of shell configuration file. 08-Jun-2011 23:48:31 - 3660 : 1612 - CShellConfigFile - Could not open xml file! Xml file name:  08-Jun-2011 23:48:31 - 3660 : 1612 - C:\ProgramData\Quest Software\vWorkspace\ShellResources.xml 08-Jun-2011 23:48:31 - 3660 : 1612 - PNShell.cpp - Waiting on event [PNSHELL_COMPLETE_2]
pnshell not working