Workbench 3.1 originally comes only with a picture datatype class for IFF pictures. And it does only support palette-based IFF pictures, not 24bit-ILBMs.
If you want to use JPEG pictures, you have to install a third-party datatype class for JPEG pictures. Check the
util/dtype directory of Aminet.
Some datatype classes need a new version of picture.datatype (V43), for example the excellent
ak datatypes. If you don't have a graphics card, get the
Picasso96 archive from Aminet, unpack it and replace sys:classes/datatypes/picture.datatype by the one from the Picasso96 archive. Do *not* install the other files from the archive.
There is also an updated
ilbm datatye on Aminet which allows to load 24bit iff pictures.
Bye,
Thomas