There are a few more examples of pictures infected with viruses that I came across in school. Some were just adaptations from IM worms (you open the picture file, and you get infected), but I have come across a couple that were imbedded in websites. Looking at the website that contained the infected picture would cause browsers to become infected (there were no hidden scripts or files in the sites, just the infected picture/s) and, in those cases, it would start a series of hijacking and downloading attempts to take over the browser.
I've also come across one case of MP3s that contained viruses. I heard they were very popular for a while, towards the early growth of the MP3 player trend (before the iPod made them a must-have accessory), but after people caught on the only stories I heard were from infected files spread through torrent sites trying to dislodge music piracy.
There are many ways to get a virus onto a computer - the coders have the luxury to be much more creative than the AV companies. The lazy ones would just try and find ways to trick people/programs into executing the files, whilst the more adventurous ones would find ways to get it done automatically, or even directly. That's one of the reasons why good active guards/scanning/firewalls have become an important feature in AV suites.