Skrew (vWallpaper developer) has updated his blog saying has vWallpaper is up and running on a v.2.0 iPhone 3G. vWallpaper allows you to display a video as your wallpaper. it will also allow you to use a video you have downloaded from mxtube to run as your background.

He is currently looking for beta testers but only if you are a donator and you have a good knownledge of iphone & ssh!!! You can read his post here. You can view Multinova’s most recent review of vWallpaper here.