It appears that the iPod touch 2nd generation and iPhone 3G does not support wallpapers on the Home screen after all. It does still have the nifty selection of wallpapers, however, though they’re only available on the lock screen.
This is sort of a surprise considering that that both the US and Canadian Apple sites say that both devices are compatible with the 4.2 software update.
From the US site:
From the Canadian site:
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