I can confirm scaling is 100% definitely on.
What exactly do you mean about the background image being big enough? It fits my layout perfectly in C2. I thought scaling just stretched the images to fit?
Are you saying my background should be bigger than the layout to accommodate the multiple resolutions? If that's the case then it won't look the same from device to device with the hills and the sun etc.
My apologies if I'm completely missing something here lol.