The file has to be an .img file for modeler to import. If you have Photoshop, you can save any bitmap as the .img file. You’ll need the plugin for photoshop to be able to handle the .img files. It’s at the following website.
http://www.telegraphics.com.au/sw/
Before I had access to Photoshop, I would use animator to create the .img file. I would just map the bitmap file I wanted to a plane, adjust the lighting and do a quick render. I could then save the image as a .img file I could bring into modeler.
Once you have the .img file(s) you need, just right-click in the window you want the image and select “Load Image Template.” It helps to move the image slightly behind the plane and then lock it. That way you can see what you are drawing in the window and you don’t accidently drag the image around.
Ross