Here are some beautiful and free wallpapers for iPhone and iPod touch.
http://www.dvd-ripper-copy.com/articles/iphone-ipod-touch-wallpaper.html
Many people have got an iPhone or iPod touch, but they are all seems alike. Luckily, we can customize the wallpaper so that it will be easily recognized.
This is mine.

and this one

So what is it of your wallpaper?

Tips about how to upload pictures to iPhone/iPod touch:
Assemble your iPhone wallpaper in a folder. And connect your iPhone with your computer.
In iTunes (PC or Mac) do the following:
1. Click the Photos tab and select "Sync photos from:"
2. From the pop-up menu, do the following:
3. Choose the iPhone-wallpapers folder, or whichever folder you have saved the iPhone wallpapers too.
4. You can then choose "All photos," or choose "Selected folders" or "Selected albums" and choose the folders or albums you want to sync.
5. Then from your iPhone go to: Settings --> Wallpaper --> Photo Library and then choose which iPhone wallpaper you would like to set. That’s it!

the wallpaper page has been updated and many new wallpaper added, you can have a look. I downloaded some there just now.

here is my latest