Picture Backgrounding With Oxygen?

[Britboy]

I want to put a background pic on oxygen to trace around. I pressed 'A', drew a box and tried to add a .gif texture, but I just got a conversion error saying it couldnt convert to .pac.

Any help?

[ScouseJedi]

The image has to be a particular size, a factor of 2

32 x 32
32 x 64
128 x 128
etc