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The background overlay is, in simpler words, the cascading scenery that scrolls as Ferazel moves, such as the mountains in Unemployed in Greenland.
This problem, like many others, is best solved by copying and pasting level info from other people's levels. The only known way to set the background yourself is a tedious process, involving choosing every 192 x 192 BG overlay tile individually to create the desired image. In short: don't bother.
Some overlays do not work well with some dimensions. The mountain background from the forest levels, for example, fit best on levels 60 pixels tall or less; still others fit perfectly fine at much taller heights. You can force overlays to fit by using the tedious process above, but the outcome is unprofessional and crude in appearance.
(This message has been edited by spamguy (edited 12-22-2000).)