Oops, forgot to add,
Media Studio Pro will handle your jpeg images without any difficulty. Simply drop the jpeg onto your timeline and adjust the duration accordingly. The AVI or MPEG conversion will happen as you render the final movie.
Incidentally the short title sequence I have posted in the 'Post your Video' section of this forum was created using mediastudio 6.5 Although the effects etc are also achievable with 6.0
http://www.videoeditingforums.co.uk/viewtopic.php?t=328
Hope that helps