Hi, sorry, I haven't seen before, that there are more than one file in the archive. I can reproduce, what you've seen. But the way you do that is wrong.
OnPaint is an event that fires each time whenever something happens on the screen: the mouse flies over the form, the form will be moved, another window covers the form. And each time you force OpenDCL to load and interpret the compressed image. BTW you won't have more success if you choose another picture format.
All you have to do is to change the way of loading. It is enough to load the picture once.
I've added a modified version of your code and project.
Fred