Introduction
Images, except GeoTIFFs, are imported with no geospatial reference, which means that they will be displayed in origo if they are not geo-referenced first. Since your data most likely will not be located around origo, you need to geo-reference the image before displaying it. Read more about: Images and Georeferencing
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Displaying an image
Images are displayed by executing the Display 
command.
Draping images on terrain
Before you drape an image on to the terrain, make sure that the image is georeferenced and in the same projection as the terrain. Use the Map image on terrain command, which can be found in the Additional display folder. In the menu you will have to select which terrain the image should be draped on.
Displaying cross sections
You need to make sure that the image has been vertically calibrated before you display it. You can do this by looking at its Schema. If it is set to Vertical Calibrated Image you can display it by using the regular Display command.