First of all, thanks to Woodyman for starting the FM radio apk from motorola thread. The system.tar file for another phone is available in that thread and when I went for the worldclock widget I saw the slideshowwidget.apk and tried it out.
It creates a 2x2 widget that scrolls through whatever images reside in the folder you point it to.
For both roots and nonroots I've attached the apk file.
Rename it by removing the .zip at the end, upload it unto your sdcard and install it by clicking on it with the installer through Astro or other methods you might normally use. You'll want to go to Settings, Applications, and check off the box to allow installs from Unknown Sources if you haven't yet.
Then just go to your desktop and do a long-press and choose Widgets to locate the slideshow widget.