http://forum.androidcentral.com/htc-hero/9531-root-rom-flash-successful.html is the link to the thread where rufflez explains the live wallpapers on our hero's.
^EPIC^ (Thinkgeek has a shirt that says that.
As far as live wallpapers for the hero, I just asked rufflez the same question yesterday after I rooted my phone. He told me that the live wallpapers are not compatible with HTC Sense that natively runs on our Hero's, you would have to download the live wallpaper package and live wallpapper picker package and install them on your phone, then you would have to set your phone to use Android's home and not HTC sense. Then you would have to dl live wallpapers which can be found on the market. He did mention that he had seen a picture of HTC Sense running a live wallpaper, but he told me he wasn't sure if it would be coming to our beloved Hero's.
As far as rooting goes, its super easy and I haven't had any problems what so ever, just be sure to get the stock RUU and do the nandroid backup just in case. The how-to's on this site and on the XDA-Dev site are awesome![]()