The Import Picture option allows you to choose any Bitmap Picture that you want to use for a Background Picture. A Bitmap Picture file has the file extension "BMP" or "JPG". Once you click on Set-up / Options / Import Picture, MM will ask you to choose the Drive and Directory where the Picture file is located. Click on OK and MM will import that file and use it as background for your MM Desktop.
Note: If the imported picture causes an error, use Windows Explorer to delete the file named swmeet.jpg from the directory where MM is installed (usually C:\hy-sport\SwMM7) and then start MM again.