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http://photojojo.com/content/photojojo-original/smooshtacts-iphone-contact-pics/

In this article, it shows that when someone calls their photo fills the whole screen instead of just a little image in the top corner, is this actually a feature, or did they fake this just by setting the image they took as the background and then had the person call them?

if you go to the contact, then edit it, and click the photo to edit it, then you assign a photo, it will show up fullscreen when they call you
 
it depends wether or not you set the picture on the phone or on the computer

to expand, setting the picture on the phone will make the contact picture fullscreen for calls. setting the picture on the computer will make the picture small and positioned to the corner for calls.
 
to expand, setting the picture on the phone will make the contact picture fullscreen for calls. setting the picture on the computer will make the picture small and positioned to the corner for calls.

once you set it on the phone, will it always be full screen, or next time you sync with the computer does it change it, because when you sync with the computer it makes that photo their photo in address book, so it should make it to be the small pic in the left corner
 
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