[osflash] Server side JPG/PNG->SWF, or runtime PNG import in v7?

[Ivan Cockrum]

Hello,

I'm investigating easy/inexpensive methods of importing JPG and PNG files
into SWF files on the server side.

JGenerator seems to be an ideal solution, but it's unclear where it stands
since the Macromedia purchase.  JZox's site states that there are
limitations on unlicensed use - but of course they can't sell licenses
anymore.  Can anyone tell me what limitations are placed on JGenerator? 
Can anyone recommend this or similar tools?

Alternately, I'd like to import PNG files into the v7 Flash player at
runtime.  I'm aware of img2swf, but the .net requirement doesn't help me.  
Any recommendations?  (I know v8 does this, thanks.  v7 is my project
requirement.)

  Ivan Cockrum
  ivan at cockrumville.com