Load a Specific Theme Group Policy Applied Incorrect Windows 7 Windows Server 2008 R2

Group policy is the set of rules that can be applied across set of clients. This is similar to .profile file in UNIX/LINUX. Load a Specific Theme group policy forces all the clients in a domain to apply a specific theme when a user logs onto a client computer. In UNIX/LINUX environment including special environment variables like ORACLE_SID are automatically set in .profile file. It can be customized under /home/username/.profile to create user specific rules.
In our case we will be seeing issue specific to Load a Theme Group Policy in Windows 7 and Windows Server 2008 R2. Say after creating a group policy we enable Preserve Changing Desktop Background. Now a new user logs onto client computer. In this case the Load a specific theme group policy can't be applied to this new user.
To solve this issue download and apply the Fix307916 from Microsoft website.