The thing is backgrounds are meant to be high resolution to fit desktop screens, at minimum 1024 x 768.
Oh, sorry I just realised it is. It looks really small. Carnix how do you cut out images, do you have a super magic wand?
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I'm working on one (My resolution is 1600 x 1050 too!)
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Mines 1680 x 1050, I don't know why my screen has an extra 80px but its annoying when looking for wallpapers, because you get a band on the two sides.