I have that on my touch, and it's the main one too. (Edit - The app does fully work with all options that pop up!)
It works just fine. When you click a photo and go to the button that normally sets the wallpaper, you will get four options - "Use as Wallpaper", "Email Photo", "Assign to Contact", and "Cancel".
I haven't tried doing any other options beside "Cancel" and "Set as Wallpaper", but those ones do work, so yes it does work if you're wondering...
Edit - I added an image to a contact and it worked just fine!
Edit 2 - I tested sending it to my email address and it was quick and flawless. So to say now, the app fully works!