I'm having a slight variation on this problem with the Desktop & Screen Saver under System Preferences (under 10.7.4): When I either right-click (Control-clock) on the desktop picture and select "Change Desktop Background...", OR if I open System Preferences and then click on the Desktop/ScreenSaver icon, the top of the window changes to "Loading Desktop & Screen Saver...", but it doesn't appear to ever get to that Preference. I can quit with the red button (upper left) okay, but cannot get to Desktop/ScreenSaver. I tried draggin the iPhoto Library (doesn't show up as a folder, as some have said - and I opened iPhoto so it would do any conversion of the iPhoto Library, then quit) to the desktop, deleted the preferences files (both com.apple.desktop.... and the plist.lockfile), restarted, and went back to try to open Desktop/ScreenSaver (or other) section of System Preferences. No difference. Even showed contents of iPhoto Library, pulled my original photos (Masters folder) out into another folder I'd created on the desktop, and then deleted the (now mostly empty) iPhoto Library file. No improvements noted.
Actually, I just went and checked a little bit ago, and found that if I click on ANY icon within the System Preferences window, the top bar will change to reflect that section ("Loading..."), the rest on the window interior goes to a grey, but never gets to that section. 😟 Between this/these 'glitches' and several other changes Apple made in 10.7, I'm seriously questioning my having spent the $30 for Lion at all, if I cannot get this issue fixed...