Screensavers need to be manually placed in the ../my screensavers/ folder. Images must be grouped into a subfolder in that directory, and the name the nook refers to the screensaver by is the name of that subfolder.

Thanks Brandon! I have four new personal photos in my screensaver and a new wallpaper too! It seems I wasn't being patient enough and did have to put them in an actual folder for them to be recognized within the other folder. Thanks! BTW I got my info about converting photos etc from the new "Using Nook" book available as an ebook, but which I read in store the other day. I took enough notes to figure some stuff out....not brave enough to hack mine yet though!!!