In case anyone is interested, you can get the PhotoWall live wallpaper to work! Granted it wont see your photos in the gallery, but you can add your own photos to the photowall.apk and they will replace the exisiting pictures that are there. I can confirm this works. Simply do the following:
-Navigate to the "res" file
-Navigate and open the "raw" file
-Replace the g1p1.jpg, g1p2.jpg (and similarly named) files with your own jpg picture files. REPLACE ONLY THE ONES THAT HAVE SIMILAR NAMES TO g1p1.jpg. Not sure if renaming your pictures to the ones originally there (I added more than were there so i assume not), but I did it just in case and just kept renaming in the same sort of sequence as what was there.
-Install apk, or place in a zip file to flash in recovery.
Will work on homescreen and lockscreen in all orientations (Single, Mosaic, etc).
Hope that helps anyone that is interested. OP - Thanks for your work on this! As is the norm with most livewallpapers on the GNex, there is some lag, but I really like the look and transitions of this livewallpaper.