Windows 8 Win8 Cannot change Lock Screen picture to non-built-in pic. Tells me I'm not activated when I am.

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I cannot change the Windows 8 Lock Screen picture to my own choice that is not a built in windows option.



If i try to do it from the side bar, change PC settings, personalize section I get the error message "Lock Screen Error" then below that "Setting the lock screen failed. Please try again". All I can do is click OK.



If I go into the built in "Photos" app, find a photo of my own, right click and on the bottom left click on "set as" and then select "lock screen" I get the following error. "Can't set this photo as the lock screen." "You need to activate Windows before
you can set the lock screen."



I've verified I am indeed activated.



What gives? 



Any ideas? 



Here's what systeminfo shows when run from a command prompt. I replaced any specific to me info with x's.



C:Usersjayth>systeminfo

Host Name:                 xxxx
OS Name:                   Microsoft Windows 8 Enterprise
OS Version:                6.2.9200 N/A Build 9200
OS Manufacturer:           Microsoft Corporation
OS Configuration:          Member Workstation
OS Build Type:             Multiprocessor Free
Registered Owner:          xxxx
Registered Organization:
Product ID:                00178-90000-00011-AA119
Original Install Date:     8/16/2012, 2:28:15 PM
System Boot Time:          9/6/2012, 12:40:10 PM
System Manufacturer:       LENOVO
System Model:              42434UU
System Type:               x64-based PC
Processor(s):              1 Processor(s) Installed.
                           [01]: Intel64 Family 6 Model 42 Stepping 7 GenuineInt
el ~1400 Mhz
BIOS Version:              LENOVO 8AET53WW (1.33 ), 10/21/2011
Windows Directory:         C:Windows
System Directory:          C:Windowssystem32
Boot Device:               DeviceHarddiskVolume2
System Locale:             en-us;English (United States)
Input Locale:              en-us;English (United States)
Time Zone:                 (UTC-05:00) Eastern Time (US & Canada)
Total Physical Memory:     3,979 MB
Available Physical Memory: 1,531 MB
Virtual Memory: Max Size:  5,131 MB
Virtual Memory: Available: 2,169 MB
Virtual Memory: In Use:    2,962 MB
Page File Location(s):     Cagefile.sys
Domain:                    xxxxx
Logon Server:              \xxxx
Hotfix(s):                 N/A
Network Card(s):           3 NIC(s) Installed.
                           [01]: Intel(R) 82579LM Gigabit Network Connection
                                 Connection Name: Ethernet
                                 DHCP Enabled:    No
                                 IP address(es)
                                 [01]: 10.54.90.50
                           [02]: Intel(R) Centrino(R) Advanced-N 6205
                                 Connection Name: Wi-Fi
                                 Status:          Media disconnected
                           [03]: Bluetooth Device (Personal Area Network)
                                 Connection Name: Bluetooth Network Connection
                                 Status:          Media disconnected
Hyper-V Requirements:      VM Monitor Mode Extensions: Yes
                           Virtualization Enabled In Firmware: Yes
                           Second Level Address Translation: Yes
                           Data Execution Prevention Available: Yes


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