Problems with background image for patch modeler

I’m having trouble loading an image for the patch modeler. I was able to do the dragon tutorial without problem, but when I make a BMP from a JPG pulled from the web and try to load it the image is skewed with lines through it and the color way off — like it’s trying to become tiled and black and white. What am I doing wrong here? ???

Thanks,
SunDogDeb

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