This is really weird. I am not exactly sure what caused this but it is quite irritating.

Got the device yesterday and proceeded to load 20+ GB of music and a bunch of wallpapers from that N900wallpapers site, as well as some apps from Extras.

One of the wallpaper packs I got was that BSG set. Thought I'd get a few of these and test them out, see how they look. Well, I am now unable to change to any other wallpaper. Changing themes does not work. Changing the wallpaper from the Photo app does not work. It shows that it changes, of course, but the desktop is stuck.
What is worse is that I deleted the files from .images (mass storage mode over USB) yet the wallpapers are still there. Tried to find the filenames across the system (terminal, as root using find) but no luck.

Reset to original settings the device, nothing.

Does anyone have any idea where the configurations files are for the desktop wallpaper? If I need to edit it manually, I will.