VLC player has many features built in it, Many of which help the users like us,
Recently I came across one interesting feature in VLC, that is , creating wallpaper from video. (Which is little tricky thing to do with media player)
In VLC it is not a tricky thing , you need follow few steps.
Refer to one of previous articles , to tweak VLC
Once you do that, play the video and pause whenever you want to save the frame as wallpaper.
Go to Video-> Click on Snapshot.
The frame will be saved as a JPEG image , in the Pictures folder of “My Documents”. With a file prefix “vlcsnap_”