I had this happen to me when my 1st Gen iPhone was jailbroken. I know that last time, I used mobilefinder to delete the background file and it took care of that. But now, on my non-jailbroken iPhone 3G, I'm having the same issue. I'm trying to select a new wallpaper picture, and no matter what picture I select, my wallpaper stays on the same picture. Does anyone know a quick fix for this? I realize that I can restore it to factory settings, but that just takes too long. Anyone have any ideas?