you could remove the widget and see if your stock clock updates, you could see if apps such as calendar updates the date, you could check if other widgets are updating...
you can also try to disable "set time automatically" and configure it yourself see if that solves your problem....
there are numerous things you can try man but the problem is not the widget.
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are you joking?
its explained in the OP.
andrew my advice to you is that you get rid of your jailbreak. repeatedly you come in here asking silly questions expecting people to guide you through the most simple of tasks when information is staring right at you.
you found the CSS file expecting to edit it and you cannot find a wallpaper png file in that folder? one that is even named in the first post?
sorry man but i cannot but think that you are pulling everyone's leg from time to time.
good luck.
Lol, anyways. I figured out how to add my own wallpaper. However, the image is stretched out on my homescreen. Ill attach some pix.
Normal

Stretched out on home screen
