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Android Phones are capable of running live wallpapers. Live Wallpaper is typically an animated wallpaper background

Android Live Wallpaper

Below is a list of free cool / interesing Live wallpapers that I have found

Digital Rain Live Wallpaper

availiable here: https://market.android.com/details?id=gs.akira.digitalrain

Mario Live Wallpaper

availiable here: http://forum.xda-developers.com/showthread.php?t=710647

Shake Them All! Live Wallpaper

available  here: http://www.shake-them-all.net/

Fireworks Live Wallpaper

available here: http://www.livewallpapers.org/fireworks-54/