"It wont even let me open it."I've blogged about this problem before and now there is even an issue for it. As pointed out in the comments there you can work around this behavior by registering a special activity with the INFO category. This is what I'll do now. Here is a good how-to. But, unfortunately, you can not trigger the wallpaper selection directly, so the best you can do is displaying the list of all the installed live wallpapers. This is still somewhat limited for my taste.
So if anybody knows of a better way to handle this, please comment so that I can avoid above awards in the future.