Could this be related to the auto-scaling that is done if the image is larger than the device’s screen? If your image is bigger than the device screen, you need to add TRUE to your newimage call.
backing=display.newImage("app-backing.png",true)
This is explained on the newimage reference page.
http://developer.anscamobile.com/reference/index/displaynewimage
isFullResolution
boolean: To override autoscaling and show the image at its full-resolution, use the optional isFullResolution parameter. By default, it is false, but if you specify true, then the new image is loaded at its full resolution (maximum of 2048 x 2048). [import]uid: 56820 topic_id: 25624 reply_id: 103611[/import]