LiveCycle Designer ES has two types of image objects.
Image objects let you add a read-only image that users cannot edit on the form. This object is useful for enhancing the look of the form. For more information about this type of image object, see Using images.
Image fields can be bound to an external data source or they can be scripted. Image fields support the merging of external image data through binding. When the data source contains a value for an image field, the image is rendered in the form. With this capability, images can be selected and loaded dynamically. For example, a form can enable users to choose catalog items and, through scripting, a picture of each item could be displayed as a result. If the form contains an empty image field, the path to the image identifies which image to display in the form.
Note:
Interactive images in image field objects can be updated when the form is opened in Acrobat and Adobe Reader 7.0.5 and later. Interactive images become read-only and cannot be updated when the form is opened in Acrobat 6.0.2 and Adobe Reader 6.0.2. However, through scripting in an interactive PDF or HTML form created by LiveCycle Forms ES, a user could request the same form again merged with a different image.
Joint Photographic Experts Group variations (JPG)
LiveCycle Designer ES supports JPG images that include digital camera Exchangeable Image File (EXIF) data.
Graphics Interchange Format (GIF)
Although LiveCycle Designer ES supports GIF images, animated GIF files are not supported. LiveCycle Designer ES also supports transparency within GIF files to allow for overlaying images on forms.
Portable Network Graphics (PNG)
LiveCycle Designer ES supports transparency within PNG files to allow for overlaying images on forms.
Tagged Image File (TIF)
LiveCycle Designer ES supports Monochrome (1 color component 1-bit depth), Greyscale (1 color component 8-bit depth), RGB (3 color components 8-bit depth), and Palette (1 color component 1,2,4,8-bit depths) TIF images.
An initial (default) image to insert at run time can be specified by either a file name or a Uniform Resource Locator (URL). Initially, the image is linked, which means that it is stored separately from the form and displayed when the form is opened. Alternatively, the image data can be embedded in the form when the form is created.
Caution:
Linking to an image is not a secure way to protect sensitive business data. If the image data is considered sensitive, you should embed it in the form. Also, you can use a secure HTTPS connection in conjunction with a URL. However, HTTPS protects the transmission of the image data only while the data is being transmitted; it does not protect access to the image (that is, no authentication is performed).
Keep in mind that if the image file or a link to the image file is in the data file, the image only appears when the form is rendered and is not visible when you are designing the form. Also, if you plan on using the form offline, select the Embed Image Data option in the Field tab in the Object palette so that all components of the form are available.
See also 

Overview of image fields