From Splash Gene:
***Free Free Free*** i.Wallpaper has thousands of wallpaper for your iPhone and iPod Touch. We collection thousands of perfect wallpaper designs specially designed for your iPhone or Ipod Touch you won't find anywhere else. All this and more absolutely FREE! Enjoy!
**How to set wallpaper** Open your iphone or ipod's settings control panel and select the wallpaper item. From there, you can select the image you would like to set for the background picture.