Chilix have released an update to its MyCal application and fixed some issues with blurriness, letting iPhone users create better quality calendar wallpapers. It's available in the App Store for $0.99 (and noticed the app has a free version, too).

Due to a bug in the way the iPhone displays images saved to the Film Roll, wallpapers were looking a bit blurry. With our newly added Screengrab mode though, you can save crytsal clear wallpapers everytime. See the updated User Guide for more details.

TUAW wrote:

It allows you to pick a background -- from a wide variety of built-in images or from your own collection -- select a calendar style and set transparency levels. When you're done, it outputs a wallpaper image you can use to get a quick view of the month without even unlocking your phone. To be clear, it won't show you any appointments or tasks, just a good-looking calendar that's readily accessible

Check-out the User Guide for more details.

[Chilix Blog via TUAW]