Greyhill of Clickteam has just also finished the Character Image extension. This is a Multimedia Fusion 2 Developer only extension that basically is an updated Text Blitter object.
The help in the object is extensive so be sure to take a look. There is also a number of example files in the example folder under your MMF2D directory.
It also works in an EXE, Java and Flash.
Clickteam would also like to thank the guys at Subsoap -- www.subsoap.com for help with sponsorship, design and testing of this extension. They were the driving force behind the extension.