I have no issues with jpg files, PSP takes care of that. It is the JP2/JP2000 files that I need to open/convert to TIFF/PNG so that I can view/analyze them with PSP.
I have made a suggestion to the authors, so I am anxious to hear their views on it.
1) The JP2 format is supposed to allow it to decode just small segments at a time. This means that while the entire decompressed image may be several gigs in size, the viewer only needs to handle the few megs that the portion currently in the view window requires. Unfortunately, not all decoders take advantage of this feature.
2) Have you tried batch converting these files? Since xnview wouldn't have to display them while batch converting, this might byupass the memory limit.