We've had this one on the list for a while and just now got to it. It wasn't a grievous problem -- when a butterfly flew above another butterfly, sometimes you'd see part of its wing disappear. Well, that's taken care of now, sorry for the inconvenience folks!
All went to black after the July 2nd update .. no more pretty colors. I uninstalled it but thinking about trying it again.
I just uploaded a fix to an issue with Android 2.2 devices, please let us know via e-mail (contact AT kittehface.com) if that doesn't fix the issue.
I got a notice earlier there was an upgrade available so I updated and now I have no wallpapers of yours that will work. Screen is black except for my usual icons. Thanks for screwing my phone up!