Great proggy! Along with the errors already mentioned, I'll say if you guys want to use a wallpaper, make sure it's the right size (320x240 I think)
I tried to use some awesome iPhone wallpapers (320x480), and the size crashes the proggy ( the 1.011 version too). It'll crash too if I use pics from the 2MP camera.
Not really a bug, just resize your wallpapers.