I know that they need to be a 1:1 ratio width:height. If the graphic is not perfectly square it will get squashed into a square shape. I just do a little photoshop work before importing to make sure the background on every image is perfectly square. I'm not sure about the ideal size however, but I have noticed that if the image is too big it will not look as good so I'm sure there is one. Maybe someone can enlighten us.
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