jolouis-

Un-installed, deleted, re-installed. Loaded fine, first try enabling alarm freezes on the "Wait a Moment" screen 2+ minutes. Killed it, restarted, alarm works fine. Still get the wallpaper error.

From xterm as root:

read user config file
trying to load/home/user/MyDocs/7mile%20beach%20grand%20cayman.jpg
Your osso lib has an issue, power management disabled...
python[1028]: GLIB DEBUG ConIc - con_ic_connection_send_event(0x352c10, 4e6f9040-e549-4da6-a3ac-09ce2ab12300, WLAN_INFRA, 0)

Just for giggles, I renamed and reset my background eliminating the spaces in the file name (7mile beach grand cayman.jpg to 7milebeachgrandcayman.jpg) and no more wallpaper error. Output from xterm is the same (with the exception of the filename).

Hope that helps.

*edit* on screen blank xterm adds:
System Inactivity: 1
System Inactivity: 0