When I put a decal on a cylinder, either custom or pre-defined, The aspect ratio goes wonky.

It seems that SW will stretch the decal around the entire cylinder, but the bounding box is only relfected as the diameter of the cylinder. This is making aspect control and placement difficult. Not only does the aspect ratio not normally control aspect ratio, but rather size, on a cylinder you can't adhere to the desired size either because it ill-regulates the width. I've gotten around the strange aspect ratio by initially dividing the width by pi, but it's not ideal. Any suggestions on accurate decal placement and sizing or is this as good as it gets???

I'm simply exporting photoshop graphic files as .bmp's (I've tried all the others as well), and using that as my SW decal. Maybe a different format or set of parameters on the source image would convert into sw better?

Any advice would be appreciated. Thanks.