1. No. Take an image and open it in any decent image editing software. Resample it down to the right size (I don't know what size is needed for this board) in pixels. Make sure the resolution is set to 72 dpi. Save it.
2. Yup. However, the image size it so small, that it likely won't be a problem. It's not like your using a hi-res copy of an image.
Thanks to all for the responses. I'm a little behind the curve with all this digital stuff...
Well, maybe not TOO far behind, if you look at the general population. I'm off to work now -- where a couple of cool party tricks in Excel is enough to impress the heck out of some folks.