diff --git a/OpenSim/ApplicationPlugins/Rest/Inventory/RestInventoryServices.cs b/OpenSim/ApplicationPlugins/Rest/Inventory/RestInventoryServices.cs
index 5de2cb4d4c..61c3ac409e 100644
--- a/OpenSim/ApplicationPlugins/Rest/Inventory/RestInventoryServices.cs
+++ b/OpenSim/ApplicationPlugins/Rest/Inventory/RestInventoryServices.cs
@@ -31,6 +31,7 @@ using System.Collections.Generic;
 using System.IO;
 using System.Threading;
 using System.Xml;
+using System.Drawing;
 using OpenJPEGNet;
 using OpenSim.Framework;
 using OpenSim.Framework.Servers;
@@ -1931,8 +1932,11 @@ namespace OpenSim.ApplicationPlugins.Rest.Inventory
             if (ic.Item.AssetType == (int) AssetType.TextureTGA ||
                ic.Item.AssetType == (int) AssetType.ImageTGA)
             {
-                // TODO: DO we need to convert it? Or is it enough to flag
-                // it appropriately?
+                Bitmap temp;
+                Stream tgadata = new MemoryStream(ic.Asset.Data);
+
+                temp = OpenJPEGNet.LoadTGAClass.LoadTGA(tgadata);
+                ic.Asset.Data = OpenJPEGNet.OpenJPEG.EncodeFromImage(temp, true);
             }
  
             ic.reset();
diff --git a/prebuild.xml b/prebuild.xml
index 4cd6207c9f..c460ae8fdf 100644
--- a/prebuild.xml
+++ b/prebuild.xml
@@ -1255,6 +1255,7 @@
       <Reference name="Mono.Addins.dll" />
       <Reference name="System"/>
       <Reference name="System.Xml"/>
+      <Reference name="System.Drawing"/>
       <Reference name="libsecondlife.dll" />
       <Reference name="Nini.dll" />
       <Reference name="XMLRPC.dll" />