Mine works (and I installed the screensaver hack an hour ago).
I currently have this image as a screensaver:
http://www.kawapaper.com/d/3177-3/Ka...1_1024x768.jpg
Try and use that image w/o altering it. If it does not work something is wrong with the install. If that does work your images are not correct (probably size?).
This might help with finding the cause of the problem
