Both the iPhone 4 and iPhone 5 are 640px wide devices. They will use the exact same image. You cannot use dynamic images to handle different shapes only different sizes.
The scaling number are a “greater than” operation. Since my last config.lua doesn’t use it, you don’t need it if you’re only supporting those two (well three if you count the 4 and 4S) devices.
But for your future use if and when you decide you want to support a 3G and a 9F when ever that comes out:
To help you understand the calculations, I’m going to drop back to supporing the 3Gs at 320px wide. Corona looks at at your device and determines it’s width. It then takes the width value from the config.lua and does a calculation. In this case: device = 640, config.lua = 320 so its = 2.0. Now you want to run it on an iPad2/mini at 768px wide:
768 / 640 = 2.4
And iPad retina (iPad3/4) at 1536 wide would be: 4.8.
If you are only dealing with Apple, then you can get away with 2.0 and 4.0 as the values because the Retina phones are 2.0x greater than 320. The iPad regular is 2.4 which is greater than or equal to 2.0 but less than 4.0, so it would pick up the @2x images. Then the iPad Retina at 4.8 is greater than 4.0 so it picks up the @4x graphics.
Because I wrote the ultimate config.lua to support the gazilliion android devices, I had to make some decisions for those devices. Some devices, like the Motorola Droid was a 480x800 type device. 480 is half way between 320 and 640. I would prefer for Corona to use the @2x image on this device and scale it down than to pick up the 1x image and blow it up. 480/320 = 1.5, which is where the 1.5 comes from. This allows all of those 1024x600 class devices (like the 1st gen Kindle Fire and Nook Color Tablet) to pick up the @2x image. Then the new HD tablets using the 3.0 multiplier would pick up the @4x images (basically any device 960px or wider – remember this is on the short side, not the long side)
Simply put, if the device’s width is less than 480px, you get the regular 1x graphic. If you are 480px-959px wide, you get the @2x graphic. If you are 960px or wider you get the @4x graphic. Remember (can’t emphasize this enough. Its the width when holding the device in portrait mode regardless on if your app is landscape or portrait)
If you drop Android out of the equation and want to focus only on Apple devices (at least until we see what the next round of iPhone’s are going to hold for us), then you can use 2.0 and 4.0 to get the behavior you want. If you don’t want to support iPads, then you don’t need @4x. If you don’t want to support the 3Gs, then you don’t need the small images either and can just do everything on a 640px wide basis.
EDIT: Fixed some typos.