Hi Aaron, I wouldn't be surprised if your 3MB image is a highly compressed TIFF image that is actually quite high resolution (like maybe something like 7000x4000 pixels).

The TIFF format is able to compress black and white images with large areas of white in them really well, so that 3MB of highly compressed data becomes a much much larger data size when fully uncompressed to raw texture data.

You'll need to reduce the pixel resolution down to something smaller like 1280x1024 and then it should work.

Rhino works because it is automatically resizing the image to be smaller before trying to send it to the video card. MoI is ending up using a larger sized image which won't fit in your video card's memory.

I should be able to tune this up a bit so that MoI will automatically resize images to a bit smaller in size, right now it only does it to the theoretical maximum size that the card says it supports, but this may still not fit in the actual available memory of the card.

There was also another recent thread on this same issue, see here for more info:
http://moi3d.com/forum/index.php?webtag=MOI&msg=919.1

But to make a long story short, resize the image down to a smaller size and you'll be in business.

- Michael