OK, I got to step 2.
I went into Paint, and set the size to 480 x 256 and saved it as blank.png.
When I try to import it however, an error message pops up saying "invalid color depth"
I also tried setting the blank pic size to 256 x 480 and it didnt work.
Invalid color depth = save it as a 256 color bitmap. I have no idea why making a blank bitmap would be too much depth for RM2k3, but..