Yes, it's trivial
We jsut did png files at work for aproject. Both reading them, writign them and comparing them (png are lossless)
I think the term you want to read up on is rasterizing. There are no Swing components to do it. You'll have to find the appropriate class that can load an image file and supply you with a BufferImage(class) whcih you use to pant with usign the Graphics.drawImage() method.
EDIT:
So, you need to create a custom JComponent with the paintComponent method overridden. Depending on the image size, you'll also want to over-ride the getPrefferedSize() method of JComponent. Toss your custom component into a JScrollPane and you are set!
Man, I almost want to write this for fun. I could get something generic working in a bout an hour. LOVE JAVA for that!