Finally got dual monitor setup going.  That got me interested in having two different backgrounds on each monitor.  On a mac its easy, its a built in function in Mac OS X. Windows you need to get a program.

Jon Tackabury has create a software to handle this, since the functionality is lacking in Windows 7.  You can also use this software in XP and Vista as well.  Best part its free!

Display Fusion – Enables Multi Monitor Taskbar and desktop wallpaper. Visit his site for all the details of the program.

1. Visit Jon’s Website and download DisplayFusion

2. Install DisplayFusion once it has completed downloading. Note for Vista/Windows 7 Users: You MUST install DisplayFusion into your “Program Files” or “Program Files (x86)” folder or DisplayFusion won’t be able to manage higher privileged windows, like MMC console windows
Should install to C:\Program Files (x86)\DisplayFusion

3. Once it has completed installing. Right click on Display Fusion from the taskbar. Select Desktop Wallpaper.

4. Here you will select which wallpaper you want. Click on 1p (p = primary). Select Load From and select the location of the image. Repeat the step for 2.