Background image in Blender 2.54

I have been trying to load a background image in blender 2.54 and have not been successful.

I have followed the following tutorial http://www.screencast.com/users/Neal/folders/Blender25X/media/e85aaea4-7a4c-4b48-825d-56ec431f69c1

but it still doesn’t work, it works if I upload a blender 2.49 file. But doesn’t let me upload it directly in 2.54.

Appreciate the help.

http://www.blendercookie.com/2010/03/15/using-multiple-background-images-in-2-5/
Note that you need to be in orthographic view for the background image to show. Toggle between orthographic and perspective view with numpad 5

A side note - there is some memory leak as the memory usage increases while going through frames on 2.49b the refresh button helped but in 2.54 hadn’t found it.