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Favorite Answer
Synchronize your favorite graphics using iTunes. Then when you select your photo from your iPhone's photo album, tap the options button in the lower left, and select "Use As Wallpaper"
As for the games, they need to be optimized for the iPhone, so standard PC games will not work. There are developer tools on Apple's website to show you how to design the applications. The best option, is to visit http://allfreeiphonegames.com to find games that you can download or play over the internet.