No, that is for the parallax backgrounds and I always keep that turned off. It is some bit of coding somewhere that does not get applied to our custom backgrounds, or so I assume. There are a lot of websites claiming to know the "top secret" method to get them to work, but none of those websites are correct. There might be some apps that can generate custom backgrounds that work, but I've never found one that allows me to take my artwork and convert it. They merely want to generate colorful backgrounds on their own. I'm not interested in that, so I've never attempted to use any of those apps.

This is rather annoying to me. Prior to iOS 7 (I think) creating a square background of the proper size would rotate and not zoom on iThingies. This methiod also works fine with every Android device I've had plus some other devices. Not sure why Apple thinks they need to mess up our custom backgrounds, or if they are not doing it on purpose, why they won't fix the issue.