Is there a way on 3.40 OE-A to get rid of the wave on the XMB? I have 01-12.bmp with 12 High Resolution images and I want them showing without the wave. I know you can set an image as wallpaper in the theme setting but that's not what I want. In x-flash that I used before using OE, there's an option to get rid of the wave thing. I was thinking that a system_plugin_bg.rco can be customized without wave. Can it be done? thanks.

Yes.  Open your recompiled system_plugin_bg.rco in a hex editor, and just go crazy changing a lot of the numbers and letters.  Then replace your old one, and your waves will no longer appear.  ;)