I have read it is 900x800 or 960x800. it doesn't seem to make sense as the display is a widescreen. those resolutions make it almost a square screen, which it isn't?!
Those are correct. Reason is that when you hold your phone vertically, you have a resolution on the screen of 480w * 800h. However, if you notice, you have multiple panels (5 - 7, maybe more, depending on your ROM), and as you move between these panels, the background moves with them. So, off of a 960*800 image, at any given time, your are only seeing 480 pixels from the width. As you move between panels, you'll get a different 480w pixels from that image. It's just scrolling is all.
