Here is something that seems to work wonders at removing the lag and choppy screen transitions and animations from your home screen when using live wallpapers. Move the live wallpaper to your SD card, then install it as you normally would. For some reason this gets rid of the terrible lag I was experiencing when ever I used a live wallpaper. I am running BBV6.2 with the stock over clocked kernel ( just came from V6.1, what an improvement! ). I'm using the Solar Winds live wall paper from the market. For some reason you have to download the ones you want from the market and then go into settings, manage applications and move them to the SD card .I dont know why but it wont let you move the pre installed live wallpapers to the SD card. This worked for all of the ones Ive downloaded so far. Hope this helps .