Go to Windows\system32 and do a folder search for "pnkbstr" (without quotes, obviously). You should see two exe's called PnkBstrA.exe, and PnkBstrB.exe. Go into the properties of each and under compatibility, check Run as Administrator.
Secondly, go to your Services window (in W7 you can access this through the task manager, or go to Run -> and enter services.msc). From there, locate PnkBstrB (mine doesn't list PnkBstrA for some reason, but if it does, do this same step for it), right click, go to proterties, click on the Log On tab, and check the box labelled "Allow service to interact with desktop" under the Local System Account option.
And that's it. It took me a loooooong time to sort through all of the google results to find this. And yes, it does work.