I remember i had a problem before with an image, four white squares over black font ,
and when i tried to import it with RCOEdit and then the resulted image was streched
image and only 2 squares showed fro the the image.

I think the problem was cause i didnt left black space from up to right .
try to cover the image with black space ,up and down from your icon for BMP
Or make a PNG image with transparency ... this one works better.

MAke the orange black , or cut out the orange color in the image then save as PNG.