I always have a small bar on the top of the watch using your live wallpaper (using all the other 5 live wallpapers I have it dosen't happen).
On live wallpaper configuration I choose Watch Position -> Fill Height but it always keep that bar (the same with Fill Width). If I choose a background picture I see the top part of that picture. If I try to position/resize manually both background and watch face nothing changes: I always have that bar on the top. If I move both watch face and background out of the preview square and the bar isn't anymore visible, when I apply and go back to my home screen the bar is still present.
I am using your fantastic app on my K8 SmartWatch having a screen 320x320 with Android 4.2.2