Well, making the width bigger than the original width:height ratio would take quality away. Making an image bigger than it originally was already takes too much quality out of it... 120X128 is the correct ratio for the a 128 version.
Thanks, I'm new to this blog thing. Oh and #1 is transparent, I thought it would be cool. Let me know if you want it in a color, it has to be like navy blue though. Or a different border. I'll keep working on it!