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Ok, I'm in this site because I will soon be getting my own Axim.
In the meantime, I still have my Cassiopeia. To display your picture on the Today screen, try saving it as jpeg (is the only format I've used for my pictures). Then save it in your My Documents folder (maybe in a subfolder of My Documents either on your Storage Card -like I've done or main memory). Then go to your Settings screen, then "Today". Select one of the "Image" in the menu and press the button "Options", it will give you a field named "Image path"...that's when you select the picture from whichever folder you saved it to (after clicking "Browse"

. Hit OK for that window and OK all the way out. Now go to Start, Today and presto!
I hope this applies for PocketPC 2002.