Actually its a bug .Forms supports JPEG File Interchange Format(JFIF). So you have to convert JpG to the JFIF format.

There are many JPEG formats. The only JPEG format supported in
Forms is the JPEG File Interchange Format (JFIF) which is the
baseline sequential DCT JPEG. Progressive JPEG (as well as
Lossless JPEG and Hierarchical JPEG), are not currently supported.

Possibly your image file is stored using one of the non-supported
formats. As a workaround, you can convert progressive JPEG format
to and from baseline JPEG. There is a free set of programs
provided by the Independent JPEG Group that allows this. The
Independent JPEG Group home page is http://www.ijg.org/

I found this thread from 2002 in search and today, 2011, i have the same problem.

There is not any patch to make forms work with all jpg?

My design team upgraded to Photoshop CS5 and it no longer has support to generate a compatible jpeg.

I had to let a computer with photoshop cs3 just for it.

If ther is no way to make forms work with enchanced jpeg, there is a way to make it work with PNG?

Thanks.

My software versions:

Forms
Forms [32 Bit] Version 9.0.4.0.19 (Production)
Oracle Toolkit Version 9.0.4.0.31 (Production)
PL/SQL Version 9.0.1.5.1 (Production)

Server
Oracle Database 10g Release 10.2.0.3.0 - 64bit Production
PL/SQL Release 10.2.0.3.0 - Production

I have the same question.
We are using forms 11.1.1.3 and currently, we have a form where .gif and .jpg images are shown. Now our customer wants to display .png images. Is it not possible at all? Maybe with a java bean?