OK, so this thread is a little old, but I have a solution that someone might someday find useful. I think Android has problems scaling large images down, so the LinearLayout size ends up getting bumped by the background drawable bitmap, and the ImageView ends up forcing up the size of the parent container.
Unless you use a relative layout. You can make the ImageView relative to the position of the LinearLayout, even when the ImageView is behind the layout in the parent. My solution looks something like this:
<?xml version="1.0" encoding="utf-8"?>
<RelativeLayout
android:layout_width="wrap_content"
android:layout_height="wrap_content"
xmlns:android="http://schemas.android.com/apk/res/android">
<ImageView
android:src="@drawable/activation_popup"
android:scaleType="fitXY"
android:layout_width="0dp"
android:layout_height="0dp"
android:layout_alignTop="@+id/activation_layout"
android:layout_alignBottom="@id/activation_layout"
android:layout_alignLeft="@id/activation_layout"
android:layout_alignRight="@id/activation_layout"
android:contentDescription="@string/act_code_label" />
<LinearLayout
android:id="@id/activation_layout"
android:clipToPadding="true"
android:padding="25dp"
android:layout_width="wrap_content"
android:layout_height="wrap_content"
android:orientation="vertical" >
<!-- LinearLayout wraps a bunch of smallish views here -->
</LinearLayout>
</RelativeLayout>
I tried this on a top of display sizes and OS versions, seems to work great. Note that the padding in the LinearLayout is a trick to make space for a shadow border in the background image graphic. The LinearLayout doesn't need any relative positioning because top left is assumed.