What's the width and height of the live wallpaper preview thumbnail in pixels? It's definitely larger than 72x72, that I know.
150 x 150 at 72dpi produces a very crisp preview image (on the DroidX anyway).
I did a test by taking a screenshot of the wallpaper list in the emulator. It shows the medium DPI thumb version and had exactly 75x75 pixels. Since 75x2=150 you could saved yourself some pixels ;)
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