[Optimus One, P500 Original Android Development] kyerie030:
Here's a logcat of what happens. I havent restarted the launcher after applying the wallpaper though, and I see a lot of trying to unmount usb0.

D/alogcat ( 4058): stopped
D/alogcat ( 4058): starting ...
E/Tethering( 1549): attempting to remove unknown iface (usb0), ignoring
V/alogcat ( 4058): paused
D/Launcher( 2661): -- loadPreferences()
D/alogcat ( 4058): stopping ...
V/alogcat ( 4058): destroyed
D/alogcat ( 4058): stopped
E/Tethering( 1549): attempting to remove unknown iface (usb0), ignoring
E/Tethering( 1549): attempting to remove unknown iface (usb0), ignoring
E/Tethering( 1549): attempting to remove unknown iface (usb0), ignoring
I/ActivityThread( 4218): Publishing provider com.cooliris.picasa.contentprovider: com.cooliris.picasa.PicasaContentProvider
I/ActivityManager( 1549): Displayed activity com.cooliris.media/.Photographs: 345 ms (total 471 ms)
I/ActivityManager( 1549): Displayed activity android/com.android.internal.app.ResolverActivity: 164 ms (total 164 ms)
E/Tethering( 1549): attempting to remove unknown iface (usb0), ignoring
I/Gallery ( 4218): onCreate
D/GoogleLoginService( 2045): onBind: Intent { act=android.accounts.AccountAuthenticator cmp=com.google.android.gsf/.loginservice.GoogleLoginService }
D/CacheService( 4218): Refreshing Cache for all items
I/CacheService( 4218): Refreshing cache.
I/CacheService( 4218): Building albums.
I/CacheService( 4218): Done building albums.
I/CacheService( 4218): Building items.
I/RenderView( 4218): First Draw
I/CacheService( 4218): Done building items.
D/GoogleLoginService( 2045): onBind: Intent { act=android.accounts.AccountAuthenticator cmp=com.google.android.gsf/.loginservice.GoogleLoginService }
D/GoogleLoginService( 2045): onBind: Intent { act=android.accounts.AccountAuthenticator cmp=com.google.android.gsf/.loginservice.GoogleLoginService }
I/MediaFeed( 4218): Replacing media set 500486360
I/MediaFeed( 4218): Replacing media set 198835179
I/MediaFeed( 4218): Replacing media set 1842980172
I/MediaFeed( 4218): Replacing media set 1506676782
I/MediaFeed( 4218): Replacing media set 1013722443
I/MediaFeed( 4218): Replacing media set -587091498
I/MediaFeed( 4218): Replacing media set -302294059
I/MediaFeed( 4218): Replacing media set -1570776318
I/MediaFeed( 4218): Replacing media set -1428977566
I/MediaFeed( 4218): Replacing media set -121599456
I/MediaFeed( 4218): Replacing media set 547001233
I/MediaFeed( 4218): Replacing media set -1928128949
W/Flex ( 1549): getString FLEX_COUNTRY_CODE COM
W/Flex ( 1549): getString FLEX_OPERATOR_CODE OPEN
D/StatusBarPolicy( 1549): [BRIGHTHY] curNetwork=51505 curHPLMN=51505
D/CacheService( 4218): Refreshing Cache for all items
I/CacheService( 4218): Refreshing cache.
I/CacheService( 4218): Building albums.
I/ActivityManager( 1549): Displayed activity com.cooliris.media/.Gallery: 1667 ms (total 1667 ms)
I/CacheService( 4218): Done building albums.
I/CacheService( 4218): Building items.
E/Tethering( 1549): attempting to remove unknown iface (usb0), ignoring
I/CacheService( 4218): Done building items.
I/GridLayer( 4218): Slot changing from -1 to -1
E/Tethering( 1549): attempting to remove unknown iface (usb0), ignoring
W/Flex ( 1549): getString FLEX_COUNTRY_CODE COM
W/Flex ( 1549): getString FLEX_OPERATOR_CODE OPEN
D/StatusBarPolicy( 1549): [BRIGHTHY] curNetwork=51505 curHPLMN=51505
E/Tethering( 1549): attempting to remove unknown iface (usb0), ignoring
W/Flex ( 1549): getString FLEX_COUNTRY_CODE COM
W/Flex ( 1549): getString FLEX_OPERATOR_CODE OPEN
D/StatusBarPolicy( 1549): [BRIGHTHY] curNetwork=51505 curHPLMN=51505
I/GridLayer( 4218): Slot changing from 8 to 0
I/RenderView( 4218): Texture creation fail, glError 1281
E/Tethering( 1549): attempting to remove unknown iface (usb0), ignoring
E/Tethering( 1549): attempting to remove unknown iface (usb0), ignoring
I/RenderView( 4218): OnPause RenderView com.cooliris.media.RenderView@4851f960
W/Flex ( 1549): getString FLEX_COUNTRY_CODE COM
W/Flex ( 1549): getString FLEX_OPERATOR_CODE OPEN
D/StatusBarPolicy( 1549): [BRIGHTHY] curNetwork=51505 curHPLMN=51505
I/ActivityManager( 1549): Displayed activity com.cooliris.media/.CropImage: 373 ms (total 373 ms)
I/CacheService( 4218): Starting CacheService
I/CacheService( 4218): Preparing DiskCache for all thumbnails.
I/CacheService( 4218): DiskCache ready for all thumbnails.
E/Tethering( 1549): attempting to remove unknown iface (usb0), ignoring
W/Flex ( 1549): getString FLEX_COUNTRY_CODE COM
W/Flex ( 1549): getString FLEX_OPERATOR_CODE OPEN
D/StatusBarPolicy( 1549): [BRIGHTHY] curNetwork=51505 curHPLMN=51505
E/Tethering( 1549): attempting to remove unknown iface (usb0), ignoring
I/Gallery ( 4218): onDestroy
E/Tethering( 1549): attempting to remove unknown iface (usb0), ignoring
D/Launcher( 2661): -- loadPreferences()
E/Tethering( 1549): attempting to remove unknown iface (usb0), ignoring
V/alogcat ( 4058): created
D/alogcat ( 4058): canceling periodic saves
V/alogcat ( 4058): started
V/alogcat ( 4058): resumed
D/alogcat ( 4058): starting ...
I/ActivityManager( 1549): Displayed activity org.jtb.alogcat/.LogActivity: 96 ms (total 96 ms)
W/Flex ( 1549): getString FLEX_COUNTRY_CODE COM
W/Flex ( 1549): getString FLEX_OPERATOR_CODE OPEN
D/StatusBarPolicy( 1549): [BRIGHTHY] curNetwork=51505 curHPLMN=51505
E/Tethering( 1549): attempting to remove unknown iface (usb0), ignoring

EDIT: It seems that fserve already solved the problem on the wallpaper?