Did you have to call up Verizon to re-authorize your phone after your factory reset? Or was it ready to go right away?
you go through the set up again. It takes a while but no need to deal with Verizon. it calls a number by itself and runs through the process.
I backed up all my apps and data with mybackup pro and astro. Some of the apps were not recognized by MBP but astro got them all. All the data was from MBP. I also use more icons and apps organizer but they were all saved by MBP.
Again it's painful if you have a lot of customizations and things saved. Takes a long time to reinstall all that stuff.
If you just want the live wallpaper I would suggest you first delete the cache of the market, battery pull, then delete the market update of the app. before data reset. The market app update reinstalled for me after a few hours but it sure makes the market slow for a while. There is no way to force update the market app. I ended up battery pulling again after this and it worked much better.