Originally Posted by ZimLanfire

THE key to getting Live Wallpapers without rooting is REPLACING the 2.1 updater with the CL14 updater. If you skip that step, replacing the package (.tar file) won't matter because it won't work.

You also HAVE to use the new recovery updater. If you try to use the stock updater, it won't work.

Most of the time that people are having problems, they're skipping through some of the instructions etc. Each step is important and has a specific function to getting the Live's to work without rooting.