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When ArcPad draws a JPEG2000, on either the desktop or on a mobile unit, the image constantly flickers until the image is completely drawn.
This is a known limit with respect to processing rasters using ArcObjects. There are components that optimize the display that are not exposed in ArcObjects (and therefore not available in the ArcPad Data Manager).
Since the required ArcObjects are not exposed to the ArcPad Data Manager, ArcMap needs to be used to access these components. This is done by converting the image to a different format.