<b>Please note that due to changes Apple made, it is impossible for this to work on iOS 4.2.1 or later. Sorry, but there's nothing I can do about it.</b>
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<br />An iOS 4.x-ready version of saurik's "User Wallpaper" theme (the one that comes with WinterBoard). A needed file was moved in 4.0 and saurik didn't know where it had gone. I have alerted him to it's new location, and he confirmed that he got the message, but has yet to release an update. So, here's an update. Enjoy!
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This package is best used on iPod 2G or iPhone 3G because using the native wallpaper option uses too much RAM on those devices.
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Unfortunately, on iOS 4, you have to respring after changing your wallpaper for it to change on your Homescreen. This is not something I can fix. Sorry.