The wallpaper will work after you change the directories the XML references for the images. For it to work properly change "/home/michael/Pictures" to the directory you drop the "DebianDay" folder into after extracting it.
When selecting the wallpaper, pick the XML file and not the PNGs.
Based off of edren's AllDay http://gnome-look.org/content/show.php/All+Day+Long+(Animated+Wallpaper)?content=83443
and magicalman315's Debian Logo Transparent http://gnome-look.org/content/show.php/debian+logo+transparent+wallpaper?content=93154