LogonStudio didn't want to work on my Toshiba laptop until I made this small settings change, now it works fine.
A lot of newer laptops are being made with a set default logon screen that can't be changed unless you do this, it's not a LogonStudio thing, and it isn't a Win 7 thing. It's an OEM MFGR. thing.
Quoting Koasati from another thread:
"I was having the same problem (Win7 64bit). Stardock Support had me try numerous things, but nothing worked. After more than 2 weeks of trying one thing after another, SD Support gave up.
Eventually, I found the default background hidden away in System32\oobe\info\backgrounds. Changed the name to backgroundDefault.jpg.bak, and LogonStudio started working."
https://forums.wincustomize.com/377638 reply3