I've come across this issue, not sure if it really is an issue, but I have to make sure. The Android and Sense update arrived a couple of weeks or so ago and that went perfectly fine (it felt like I had gotten new phone!). Now, for various reasons and slow support, I decided to do a factory reset yesterday (nothing wrong with the phone, just Hotmail). After the reset I added the old picture I used as wallpaper, and noticed I could only crop it in a one-screen-size. So now my wallpapers won't span the seven homescreens anymore. I have googled my fingers sore, I have scoured the settings, I have asked someone I know with the same phone, and their wallpaper still spans after the upgrade. I've tried restarting my phone twice, I've tried different scenes, I've tried different wallpapers. Nothing works. Has this happened to anyone else or is there something that went wrong when I reset the phone? Is there something I/we could do to fix this? I liked that the wallpaper moved too when you moved between homescreens.