If you publish and view in a browser, you'll see that the image is there - intact. My guess is that Flash is having trouble rendering the large image file. When trying to extract, this error message appears: "The bitmap is too large. The largest bitmap that can be created is 8000x8000 pixels." It could be that Flash has a default red box for large files?
Is your image 72dpi? Have you tried making the file size smaller by reducing the quality of the jpeg? Or perhaps you can split the image into two pieces... you could then "join" those pieces in Flash by creating a separate graphic or movie symbol.