Nah, as long as you erase everything away from the image and paste it over a transparent layer (Done in a photo manipulation program, like GIMP) it should fix the problem. What may have happened is that the image looked ok on the iPhone from wherever he got it, but the imperfections showed up on the background he chose.
If you were using GIMP, here's what you do.
1) Open new image that has the same dimensions as the image you're fixing
2) Click the [File] tab on the new image that is named "untitled"
3) Select [Open as Layers] and browse til you find the image you're fixing
4) Click on your [Layers, Channels, Paths, Undo] window
5) Highlight "Background" (should be in bold)
6) Go back to "untitled" image and click [Layers]
7) Choose [Transparency -> Add Alpha Channel]
8) Press [Delete] on the key board and you've got your transparent layer
9) Highlight your Fallout icon image in the [Layers, Channels, Paths, Undo] window
10) Choose the eraser icon and correct size in the GIMP window.
11) Zoom in on subject and erase everything BUT the Fallout image (the black stuff that shows up around the image)
12) Save and you're done!
That should fix it. If it doesn't let me know, and we'll figure out where to go from there.