I did not expect it to work perfectly as there are a lot of custom settings you can tweak for Raytracing but I did get rid of that awful purple mess.  Right click on your Library User Catalog and that will bring up the "Define Material" Dialogue (The Tea Party).  Go to the Texture tab and give it a name but don't spell it wrong like I did.  Browse to where you have that .JPG file that you posted.  Set it to "Stretch to Fit" and anything else you would like to play with in Properties and you are