Okay, I posted one of many attempts on the code, so I edited to the attempt that most closely resembles what was right, and edited what was meant to be 192 (of course...)

All in all, I'd say I was pretty close. With no experience other than tiled backgrounds, I figured initializing the screen was the last thing to do... so that only puts 1 thing out of order in incorrect syntax.
I took a complete stab in the dark with the BGTop:Image deal...
So there...

Thanks for the correct format dalton!
*EDIT*
Okay, that works, but only for the blink of an eye. The image shows up and becomes a blur almost immediately. I tried a bmp instead, but nothing happens...
Here's the code for bmp, anything wrong?
cardh = io.open("test.bmp", "rb")
card = cardh:read("*all")
cardh:close()
BGTop = Screen.Load16BitBG()
Screen.Initialize( 1, BGTop )
Image.LoadBMP(1,0,0,card)
while Pads.Start() == false do
end