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Really - it cannot be done. If you look at the options of what can be used (add map, browse, see drop-down on file types), it doesn't do images except .img, which is a proprietary format (Imagine software?) that I have been unable to successfully convert any image to using any software and see it in HMS - and I have a lot of software, including ArcGIS. Converting to a .img format does not work. You cannot see anything after the import.
You do not need georeferencing necessarily.
Google around for a freeware that may convert to MrSID format. I believe the newest version will take that sort of image.
Other than that, try a .dxf file, but that is only linework, not raster. Shapefile won't give you the image either.
Believe me, been 'round and 'round with wanting a background image. More trouble than it is worth.
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