Background Switcher is a wallpaper manager that can be used with multiple monitors. It's freeware and it is by far the best wallpaper manager I have ever used! It connects to flickr, phanfare, smugmug, picasa, facebook, and yahoo! image search. Oh, and of course can be directed at a folder (or a list of pictures) on your computer. It allows you to have different images on each monitor, and will switch images at an Interval of your choosing. It can also display the images in several modes including full screen, thumbnail mosaics, 4-picture montage, or snap shot scrapbook. Background Switcher is a really amazing program with many many options, and I would suggest it to anybody.
http://www.johnsadventures.com/software/backgroundswitcher