This message would be displayed if the .jpg is not, or is not properly, associated with an application on your computer.  Please see the thread at http://www.stardraw.com/forums/Topic3093-5-1.aspx and in particular follow the link to the Microsoft Knowledge Base.

Kind regards,
Rob Robinson
Stardraw.com

I get this error when I try to insert object with a .jpg file.

Failed to Create Object. Make sure the object is entered in the system registry.

OK. Is there a file size limit, because I tried this with a .jpeg and it crashed stardraw...

Yes, you can use Edit | Insert New Object.  Select Create from File and navigate to the file you want to insert.

Insert New Object supports any file type that is supported on your computer - not just bitmaps, but any supported file type. 

Kind regards,
Rob Robinson
Stardraw.com

Is there a way to import a .jpeg or .gif file into the rack view, then scale it so that it is the correct size to create photo-realistic rack drawings?