This is one thing i've really gotten pissed about. The only backgrounds that are of good, uncompressed quality are the 19 apple-supplied ones that have been the same since day one of the iPhone 2G. No matter what I do, I can't get a background on there without it being crapped on by the iPhone's horrible and unnecessary downconversion. Saving a 480x320 background from Safari = bam, downconversion. Emailing yourself one and saving on iPhone = downconversion. Transferring from a Mac or a PC = downconversion. Saving backgrounds from an app in the App Store(Backgrounds, Backgrounder) = STILL downconversion. So it seems the only way to get your own backgrounds that don't look like crap is to jailbreak. Which is not possible currently on my 3GS. What the hell?