Replace Picture allows you to replace any object (not only pictures) with a picture file. The selected shape will be deleted and the new image will have take on the size, position, z-order, and animation properties of the replaced object.
After choosing Replace Picture, a file browsing dialog (with FolderMemory) will allow you to select the image to replace with. Once you have selected the new picture, you have the following sizing options:
As always any image inserted with pptXTREME is LinkBedded.