Blargh. I stared for hours at the nearly black and nearly white image hex code, but I can't figure out why those don't decode properly. The program seems to work on every other image .bin I tried it on, however. If I knew how to add attachments, I'd put one on this message, but as it is I'll just upload it to rapidshare.
What it is: a .zip file. It contains two command-line .EXE utilities, a DLL, and a .BAT batch file. Please don't try to use them if you're not at least somewhat comfortable with the command line. Hopefully I can come up with a more user-friendly interface once I figure out the last file quirks.
Of course, you should never run .EXE's from someone you don't know. I promise that they don't contain anything harmful as far as I know, but it's always a use-at-your-own-risk thing.

Oh, and please only run it on actual image files. Other files might cause the decoding thing to go nuts (tons of errors, or a really huge output file, or worst-case, maybe an infinite loop...if it freezes, CTRL-C it!).
Program usage example:
Code:
c:\whatever\> bindecrypt image1.bin image1.out
c:\whatever\> out2jpg image1.out image1.jpg
You can also run the bin2jpgall.bat batch file, which will convert all .bin's in the current directory, provided bindecrypt and out2jpg are in your current directory as well. The output names are a little ugly though.
ALSO, make sure that cygwin1.dll is in the same directory as bindecrypt.exe and out2jpg.exe. Or you can just copy cygwin1.dll to C:\Windows, which will make it always able to be found.
So what's left to be done: Figure out what's wrong with the algorithm for a small portion of images. I'd appreciate if you could try running this on various images, especially maybe some with hardly any color variations, and see if you get any error messages from the out2jpg program. If you find such a .bin, please send it my way.
Also, this doesn't automatically detect widescreen or non-widescreen. I just looked, and apparently in the decoded, decompressed output (one of the bytes I stripped), one byte is 1 for widescreen and 0 for non-widescreen, so I guess I could work that into a resize. But if anyone has any ideas for filtering methods (a Python program using PIL or whatever), let me know. I feel that's a little less urgent though.
Bleah I'm tired.
http://rapidshare.com/files/95587164/bin2jpg.zip.html