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What happened when you tested it out with a smaller image?

Yep, that's pretty much what mine looks like. Try printing this to see if Java is looking in the right place:

System.out.println(new File("splash_screen.png").getAbsolutePath());

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Your code works fine for me. What does your directory structure look like?

Does the layout you're using respect the bounds you've set? Normally you either use a layout *or* setBounds, not both.