The bug reported in Java Bug Database also exists in iLiad.
http://bugs.sun.com/view_bug.do?bug_id=4809676

I have tested it with a 4-bits color depth, 3 components png image and the result indicated that that bug does exist in iLiad.
For most of iLiad users, it won't be an significant issue.

Somebody please refer this bug to IREX. I don't have a IREX Forum account and I have difficulty in registering one.

If you want to see what the bug results in on PC:
http://www.javaworld.com.tw/jute/post/view?bid=5&id=215465&sty=1&tpg=1&age=0

I doubt they have access to the JVM source code. The JVM was developed by Tao Group Ltd. and they have gone out of business a while ago.

I think iRex won't fix it either as this isn't a critical bug. The only solution is to port an open source JVM to the iLiad... any volunteers? :D