@Mikeu48: You're using the wrong file. Check the first post (of the JailBreak) again, then look at your device name/FW version, it should be obvious
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@Excrucibo: What? Err, that's kinda the point. And the folder is populated by the hack on the first run, so, if you don't use it, that folder's obviously empty/doesn't even exists.
@alaskazimm: Make sure you're using png files, everything else (jpg, jpeg, gif, etc) will get discarded (And, FWIW, the correct resolution for the PW in 758x1024).
Can you confirm that, when it's showing nothing (the last displayed thing/page), the linkss/screensavers folder is empty?