Agh! I deleted my message! Oh the horror! Briefly, slight correction. Any texture, image or proc, will distort with the object unless it is applied parametricallly or in world space. Distortion isn't based on image type at all. In any type of object space, the texture (proc or JPG or whatever) will always distort with the object. But images need to be applied parametrically because they are only 2d, so attempting to apply an image to a 3d object will result in banding in one direction (i.e. parallel lines as Bryce tries to make the 2d image 3d) glad I could add to the confusion... ;)