You rock (V)ega. I created a nice Angels baseball theme using a downloaded logo. Works great!
I have an XV 6800. You get the tiling, by the way, when you choose too small an image...at least that's what I have seen.
I simply recommend you use a large image and you choose option 5 (QVGA P+L), After all, you are going to want a portrait and landscape view aren't you?
You really will need photoshop or some other editor to tweak the canvas size. That is the key to really getting a good theme. I had to tweak the canvas size bigger in various dimensions each for the portrait and landscape versions because what the program does is automatically resize the image. If you have a picture within your image (like a logo), then to properly position that image you will need to tweak the canvas size and then copy and paste your colour onto the expanded canvas size.
Here is the theme I created:
Thanks again for showing me that theme creator and giving your tutorial.
Regards,
Devin