I looked into the details of the filetype. It's kinda sorta like a PCX, but the machine specific nature makes it hard to understand, let alone develop a converter for with such lackluster documentation.
This site should have something which will convert to & from that filetype.
I don't think you need me to do any work on my own for this, you can look & I'll look around for a converter.
Can you go into more detail on what you're doing with these images, what game you're augmenting, and if you're sure you couldn't use something else besides the PIC format?
What type of screen does this use? 640x200x2 like CGA and like my video thing? Because I can make a static image view program, by itself, and a converter to make individual composite 16 color type images.
Details man. Need more input! Input..