A new application

Because of the many problems with bsetbg I wrote fbsetbg. fbsetbg is a wrapper that tries to find a suitable background-setting app and then tries to set the wallpaper using that app. You don't have to configure fbsetbg. It just uses the first app it can find.
Furthermore it provides clear error messages that will make debugging problems a lot easier.

What fbsetbg needs

fbsetbg discriminates and prefers to use apps in this order:
Application Provided by Transparency Notes
Esetroot Eterm yes Don't build it yourself
feh feh yes no imagerendering
wmsetbg WindowMaker yes
xsri xsri yes Only on RedHat
chbg chbg yes Doesn't return 1 on error
display ImageMagick no
qiv qiv no
xv xv no Huge and slow
xsetroot xli no
xli xli no
xsetbg xli no

Since we all want transparency for the menu nowadays I recommend you install Esetroot. Which means of course you have to install Eterm. I recommend you install the package provided by your distro so you also install all dependencies. If you don't want to use Eterm you can copy Esetroot to a safe place and then uninstall Eterm.
If you insist on building Eterm from a source package don't forget to install imlib and libimlib-devel.

Testing fbsetbg

To test if everything works as planned you can use: fbsetbg -i from a term.

A new wallpaper every 10 minutes

If you want to have a random wallpaper every 10 minutes execute the command crontab -e and then add a line like this:
    */10 * * * * 0 DISPLAY=:0.0 PATH=$PATH:/usr/X11R6/bin \
    fbsetbg -R /path/to/your/wallpaperdirectory

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