From the Motorola Website:
Follow the steps listed below to change the home screen wallpaper.
To change the wallpaper:
While on the Home screen, press the Menu key and then touch Wallpaper.
Touch Pictures or Wallpaper gallery.
- Touch Pictures to use a picture that you have captured using the camera or copied to your phone.
- Touch Wallpaper gallery to use preset wallpapers that came with the phone.
You will be able to crop out the portion of the picture you selected by adjusting the location or size of the box that appears. When complete touch Save.
Touch Set wallpaper
Wallpapers can only be set from memory card or wallpaper gallery.
Images are intended to fill all 3 Home Screens. For best results, use an image that is in landscape mode.