Okay I was able to get the animated live wallpapers working on the 2.1 ROM (only Nexus does not work).
Disclaimer: This can brick your phone and should only be done if you know what you are doing and are willing to take the risk, I bear no responsibility for your actions.
1. Download this zip file, it contains the necessary lib files and the live wallpaper files.
wallpaper files - MEGAUPLOAD - The leading online storage and file delivery service
lib files - MEGAUPLOAD - The leading online storage and file delivery service
2. Unzip these files and place on your SDCARD. (I created 2 folders one named libs and the other app). You need to place the four Live wallpaper files in the app folder and the lib files need to be in the lib folder.
3. Restart your phone in the recover console.
4. Select mount sub-menu
5. mount sdcard and system
6. type busybox cp /sdcard/libs/* /system/lib
7. type busybox cp /sdcard/app/* /system/app
8. unmount both sdcard and system
9. restart your phone
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