You need to attach the image to a shader then use the shader on an object, a poly plane for instance.
Create a plane to the dimensions of the image, if the image is huge then scale it down eg. if it is 1024x1024 pixels make the plane 102.4x102.4 or 10.24x10.24 pixels.
Open up the hypershade window (Window > Rendering Editors > Hypershade) and create a new shader.
Double click the new shader to open its attributes and click the checked box to the right of the colour attributes. This will open the create render node window.
Make sure that the 'Normal' option is checked at the top of the window and hit the 'File' button.
Navigate to the file that you want to use and select it. The still image will now be attached to the shader.
Now apply the shader to the plane by selecting the plane and in hypershade right click the shader and select 'assign material to selection'
Hope that's what you needed,
Oops, Just re-read your message and you already tried that!! Although you could do it this way and use an alpha map plugged into the transparency attribute to get the transparent parts to be transparent.
Last edited by happymat27; 12-02-2007 at 03:18 PM.