Thank you!
Definitely a step in the direction with that example. I've managed to apply this to my game and get the background to stretch to fit multiple screen sizes.
Very much appreciated nemo
Is it possible to resize/reposition the the objects to keep them in proportion with the background so the game basically looks the same on all devices. At the minute the background will stretch which is great, but on a large screen it leaves the objects looking offset to their preferred original position.
For anyone interested, I had to run it through phonegap for me to check that it resulted in what I needed, so here's the apk of nemos example if anyone cares to check if it fits their screensize, out of curiosity.
http://dl.dropbox.com/u/44025915/C2-UniversalScreenTest.apk