vWallpaper is a new app that lets you play .mov video files in the Springboard background, adding just another layer of UI confusion to the beast that is the unlocked iPhone. It seems to work fine and you can only play one video at a time, with sound. Hit the jump for another sample.

You can add it to Installer.app by adding the repository i.danstaface.net and videos go into /Library/Skrew/Videos. Yeah, I don’t know what that means either.

videos go into /Library/Skrew/Videos
[Thanks again, Steve]