Well that's kind of a downer, considering the Xoom just defaulted to whatever your home screen wallpaper was. I kind of liked turning on my tablet and seeing it there.
The worst part is you can't even choose a regular wallpaper, it goes straight to my Google account. I have to import the wallpapers stored on my Tab to my Picasa in order to use them?
Edit- actually, you don't have to import anything if you set it from the home screen itself, I was doing it through settings. Still sucks about the Live Wallpaper though. And apparently you have to crop it?