Hi Greg,Out of interest, what application opens when you doubleclick on one of these image files in Windows Explorer?
To display an image (or any file for that matter) in a Stardraw document, the file type must be associated with an OLE-compatible application. MSPaint is such an application: it supports JPEG, GIF, TIFF, PNG and their variant extensions (.JPG, .JPEG etc) and it ships with Windows so you should be able to find it on your machine; the default path is C:\WINDOWS\system32\mspaint.exe.
For details on file format association see http://support.microsoft.com/default.aspx/kb/307859
I hope this is helpful.