to my surprise, it works - only need the picker app (attached - sorry, you'll have to unzip the file, forum wouldn't allow me uploading the apk without zipping it) plus install some actual live wallpapers (see below)
- unzip this apk onto your sdcard or extsdcard
- get a root shell (adb or terminal)
- make system writeable
- copy the apk to system app directory
- make sure permissions are rw-r-r (or at least rwx-r-r) - may not be necessary but I think it is
- remount system read only
- quit
Code:
su -
busybox mount -o remount,rw /system
busybox cp /mnt/sdcard/LiveWallpapersPicker.apk /system/app
busybox chmod go-wx /system/app/LiveWallpapersPicker.apk
busybox mount -o remount,ro /system
exit
exit
works (a little slow but not bad) with "nightfall live free" and "sun rise free" from the market. tried using it with google maps - works ok in preview but crashes when try to set permanent.