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[edited by: papabaer at 12:42 pm (utc) on July 7, 2002]
What makes images and layout work is partly subjective, but good basic design principles will always play a major factor. One word: BALANCE.
Balance can be used to create associations, establish "feeling" and even draw focus.
Imagine if you will, a highly detailed. full color jpeg image positioned top-left (or top-right) and offset by simple mono or duo-toned .gif gridlines or shapes. Used with restraint, you can actually add emphasis to your jpeg image and help create a "feel" for the page all at the same time.
Just one of the many ways to approach the issue... hope it gives some food for thought. :)