issue with still images >> jit.movie @output_texture 1 in Max 7

Hi all,
Can jit.movie load still images and output them as textures? I've tried several different png's (with alpha) and jpegs (obviously no alpha), and all show the small effect when outputting to texture setting the jit.movie @output_texture to 1. In the attached image, the screen shot on the left is with "output_texture 1", right is "output_texture 0". Is there another path for loading single-frame images to textures without first outputting as a matrix in Max 7?

Thanks,
David