OK, guys... here's the deal on the cooked in wallpaper... it's not worth it. It has turned out to be a huge hassle, and ultimately you wouldn't be able to use your own wallpaper and get the benefits anyway.
I understand that you want better screen rotation, though, so I have taken a new approach.
I switched FlipIt for another, similar screen rotation app called ChangeScreen. Initial results are night and day. Look forward to seeing this app in the next version.
*edit* Currently working on setting up preloaded, basic default settings for ChangeScreen so it is ready to go with TP2 manila out of the box.
*edit* Preloaded settings for ChangeScreen are in place. All you have to do is open the settings menu, check "enable" and "run at startup" and you will have blazing fast rotation in manila.