This version has the latest version of grub4dos 0.4.6a 2015-08-07.
Yaya appears to have fixed the .jpg display problem so that we can use standard 95% quality .jpg files (e.g. as created by MSPaint) as background images.
Please try it and let me know if you find any problems,
The latest version of E2B_Editor will allow you to load .jpg files as a wallpaper as well as .bmp files.
If you want to convert your \_ISO\MyBackground.bmp file to a smaller .jpg file, just load and save it using MSPaint (but keep the filename+extension the same - i.e. MyBackground.bmp or MyBackground.bmp.gz).
P.S. Progressive jpg's, as used by some websites, contain both low-res and hi-res images and are not supported. If you re-save them using MSPaint then they should work OK with E2B/grub4dos.