Using Watch Face Designer and Eric's launcher I have had no problems making live wallpapers, the watch can be as simple or as complicated as you like, depending on what you decide are the criteria. Backgrounds have been Gifs obtained using Virtual Dub and have sometimes been over 100Mb. This does cause some small problems at times when changing backgrounds due to the time to load hundreds of images. This can seem like the watch has crashed ( White Screen)but a bit of patience and all is resolved. Incidentally I am using an H2. Have Fun, Mike.