Unable to create an embedded object (image)

I am unable to view a previously created embedded object or create a new one.  In the images, a previously created embedded object shows in DraftSight as a pink square.  One that I create in DraftSight is a white square.  The images were previously embedded using dwgeditor2006 or 2009 and are still viewable in both versions.  We cannot see them and would like to know if it is a design flaw or something I am doing wrong.

 

My process to add a new one is Insert-->Object and select new--paintbrush picture.  I add the image we want and just get that white square.  If the previsouly embedded images were viewable I would not need to do anything.