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I've just changed back to a black home screen and it looks much much better, the folders look really good against the black. Much as I love my daughter, she didn't look right as the backdrop!
 
I agree this is kind of annoying. Unfortunately, when I went to my normal wallpaper to set it as the wallpaper for only the lock screen, not only did this not erase the wallpaper for the home screen, but it completely altered the sizing of the image, and now it looks like crap. The image was resized perfectly fine under OS3 for wallpaper.
 
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