Step 1: Preparing the Photo
1. Find the screen resolution of your device. The most popular options are 640x960, 320x480, and 240x320.
2. Resize and crop your photo in any image editor (e.g., GIMP or even MS Paint).
Step 2: Animating the Waterfall
1. Go to http://www.animationsoftware7.com/
2. Download and run the DP Animation Maker Installer. Then follow the instructions on your screen.
3. Launch the application and load your picture by clicking the Change background button.
4. Add the Stream Brush animation tool by clicking the Add animation button.
5. Paint over the falling water on your photo.
Step 3: Transferring Your Result to Your Android Device
1. Save it as an animated GIF. This is the format that the most of cell phones understand, but it reduces the quality of the picture and creates large files.
2. Save it as an AVI. This format is free of the disadvantages of GIF files, but requires additional software to be played as Live Wallpaper. Fortunately there is a free program that helps: Video Live Wallpaper. In Google Play, it can be found here