In Ver 8 you can apply a decal to the surface...don't know if it was possible prior to 8 as I only used Ver 7 for a month. You may need to go to Sean Dotsons website to download iTweak for issues on the bitmap showing as a thumbnail.
You have to place the BMP at the part level. Open the part and start a new sketch. Now choose Insert Image from the part menu. Browse to the BMP (it should be in your project path) and insert it. You can now dim to the edges of the BMP and to the part by using projected geometry.
The use the decal command to place the image on the surface of the object.