Yep. For some reason, the bitmap editor can't handle > 256 colour pictures (which seems a strange limitation, but never mind).

You can add bitmaps to the resource compiler script (.rc) in much the same way as sound files -- in this case, the relevant type is BITMAP. For example, adding a bitmap into the above "myfile.rc" example:

my_wave_name WAVE moo.wav
my_other_wave WAVE somefile.wav
yet_another WAVE thirdsound.wav
my_lovely_picture BITMAP somepic.bmp

You can load it up in the VCL using the tbitmap's LoadFromResourceName method:

[pascal]var
Bmp: TBitmap;
begin
Bmp := TBitmap.Create;
try
Bmp.LoadFromResourceName(HInstance, 'my_lovely_picture');

// use the bitmap now
finally
Bmp.Free;
end;
end;[/pascal]

For non-VCL stuff, you can use the LoadImage or LoadBitmap functions, I think.

You might also want to add the DISCARDABLE flag, which will let the things be unloaded from memory if there's little memory left, and reloaded later. Example:

my_lovely_picture BITMAP DISCARDABLE somepic.bmp

I don't know what effect that has, though, since it's been a long time since I ever ran low on memory!