To read binary data, such as an image file, you need to pass 'true' as the second parameter. However, the block in the palette doesn't have a second parameter, although it should.
Here's a work-around for advanced users. First, enter developer mode using the right-click menu on the stage. Then, open a workspace using the "workspace..." command in the stage menu and enter:
like this:
Select that text and use alt-B (or cmd-B on a Mac) to turn the text into a block. You can also right-click on the selected text and select "blockify it..." from the menu. That will give you a block with a boolean second parameter set to true:
the result of this block is a "BinaryData" object. To access individual bytes in a BInaryData object, you need to use "byteAt". That's another block that is not in the palette, so you'll need to "blockify" that, too.
Finally, to decode PNG into a bitmap, you'll to blockify:
This might be more technical detail than you wanted, but I hope some of it is helpful.