Answer
ArcPad directly supports the use of the following raster image formats:
GIF, JPEG, JPEG2000, MrSID, PNG, TIFF (including GeoTIFF and LZW compression), Windows Bitmap, and CADRG raster maps.
ArcPad requires the georeferencing information and coordinate system information in order to correctly display images on a map.
Georeferencing information can be included in the header of the image, associated .aux file, or world file.
Coordinate system information can also be included in the header of the image, associated .aux file, or projection (.prj) file.