With the new 4.0 firmware you can display your wallpaper on your homescreen behind your icons.
They’ve added a bold drop shadow behind each icon so you can see them better when using a background.
You can set your wallpaper differently for your homescreen and your lockscreen. If some of you are jailbroken, or just want this for your lockscreen on a stock iPhone, here is the background photo from iPhone firmware 4.
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