I was playing a gig a few days ago and a photographer offered me a compact flash card worth of hi-resolution images to add to my mix. I loaded the files onto my laptop and began to import into Modul8 - but the images imported 'broken' - the layer only displayed a random arrangement of static-y lines. it occured to me that I'd seen this happen before when I'd tried to load a very large .psd (about 300 ppi) Is there a limit on how large still images can be to display in M8? What is the phenomena I am encountering?
For still images a good format is PNG or PSD (photoshop). These two formats allow very high quality transparency with a full 8 bits alpha-channel. You should avoid using images bigger than 1024x768 if you want to get the best possible performances.