OK, I've tried it and it function!
As you write, not 120px images are showed and there is blue-tile background, but for now it is ok.
If you can, you can add support for 2 images live tile and large tile (I know that it's difficult, but you're on right way )
Link to my website, translated with google translator
My exlusive games, application, hacks, tweaks and more
Tools (now useless) for Windows 8
ModernApp Link 2.3 - ModernBack changer 2.8
Good tools
ModernLogin 3.0 - ShowTabTip 1.0
You can find me on Windows Phone Store and Windows Store too