Why does the ipad freeze when trying to set a new lock screen or home screen with ios7?

Hello Cruachandave,

Thank you for providing so much detail about the issue you are experiencing when setting a new wallpaper.

The first thing I recommend is quitting and relaunching the applications on your iPad:

1. Double-click the Home button.
2. Swipe left or right until you have located the app you wish to close.
3. Swipe the app up to close it.

You can find the full article here:

iOS: Force an app to close
http://support.apple.com/kb/ht5137

If you are still seeing the same issue after quitting and relaunching Settings, I recommend restarting your iPad and then resetting if it's still not working:

Restarting your device

1. Press and hold the Sleep/Wake button for a few seconds until the red "slide to power off" slider appears, and then slide the slider.
2. Press and hold the Sleep/Wake button until the Apple logo appears.

Note: Reset your device only if you are unable to restart it.

Resetting your device

Press and hold the Sleep/Wake button and the Home button together for at least ten seconds, until the Apple logo appears.

You can find the full article here:

iPhone, iPad, iPod touch: Turning off and on (restarting) and resetting

http://support.apple.com/kb/ht1430

If the issue persists, the last thing I recommend is backing up and restoring your iPad:

iOS: How to back up and restore your content

http://support.apple.com/kb/HT1766

iTunes: Restoring iOS software

http://support.apple.com/kb/HT1414

Thank you for using Apple Support Communities.

Best,

Sheila M.