You are absolutely right. I extracted the picture (the original was 600x600 pixels and well over 300 KB), resized it to 300x300 and saved it as a JPG with 60% compression which resulted in a 30 KB file. Embedded it back into the MP3 and ImgBurn had absolutely no problems with it.
This machine has PowerDVD DX 8.3.1.6107 already installed (came with the laptop).
Cheers
HighPriest