To set a YouTube video as a desktop wallpaper, play the clip (perhaps loop it first), then set it to full screen. Windows users should then be able to Alt-Tab through the open apps and place them on top of the video background. Note that again in this scenario, it is not a true desktop background — there are no desktop icons and shortcuts. Hit Esc to exit the full-screen view.
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If you prefer to have BGInfo update the database without modifying the user's wallpaper you can unselect all desktops in the Desktops dialog; BGInfo will still update the database.