I have other picture issues. I just got a Sprint EVO 4G LTE. I am unable to use uploaded images as wallpaper. They are 12 megapixel JPG files. In the wallpaper selection box, I choose gallery and then browse for my pictures using the ASTREO file manager, which previews all of the images properly. But when I select the uploaded images, I get a message "file type JPG not found".
I also cannot see these files using Gallery. I suspect that you somehow will not display images with resolution higher than 8 MP. That is not good. This is a bug IMHO.