The upcoming Google Nexus One phone with Android 2.1 has this built-in feature with which you can set animated wallpaper as your background just like how you can do on HTC HD2 with HTC Sense. Since Android 2.1 has now been ported over to Droid, it is now possible to run animated wallpapers. Thanks to the folks over at DroidForums who have posted a hack to enable this feature on Motorola Droid, running Android 2.1 ROM.

Motorola Droid on Verizon has been successfully rooted for direct access to the file system. It works on both the original Android 2.0 Rom which ships with Droid, and the latest Android 2.0.1 OTA (over the air) software update which was recently released for the Droid phone. Root access will enable you to modify the phone’s firmware to whatever you want to have on your phone like themes, apps and custom Roms just like you do on the jailbroken iPhone.