I have tried using a data URI to load the image data into a movie clip, but flash lite does not appear to support the data URI scheme.
I also thought it might be possible to base64 decode the image data and write it out to a file and load the file back into the movie clip using the file URI scheme. However, I do not see a way to write to the filesystem in the documentation. Am I missing something in the flash lite docs that would allow me to write to the filesystem?