What your supposed to do is have this in your applications manifest if your app requires a live wallpaper:
<uses-feature android:name=”android.software.live_wallpaper” />
Unfortanlty the Moto Droid has a bug and dosn’t support it, so if you place it in the manifist, it dosn’t showup in the market for all the orginal droid users out there.
You might think its as simple as removing the line and just using the uses sdk tag, but that dosn’t work because not all the 2.1 phones support live wallpapers. For some reason the droid eris and Samsung Moment don’t. Crazy. What where they thinking. When I think of 2.1 I think of live wallpapers!