Ok, so i've spent roughly 2 and a half hours already trying to figure out the "right" settings for the wallpaper, without it downgrading your custom's quality.
So far I've only figured out that it's either a jpeg or png file format =(
The thing is, i've tried using the default jellyfish wallpaper and it looks crisp and clean. I downloaded the same wallpaper from a flickr account and, lo and behold, when used as a wallpaper, the quality lowers quite significantly.
I'm trying to pull out the default wallpapers from the phone via the USB but I have no idea where it's located at =( If i can grab one of them, maybe il be able to determine how its set up.
Does anyone have any idea?