Descriptive Problem Summary:
When stretching is enabled in controls that allow images [labels, ect] the image distorts color leaving multi-colored lines.
Numbered Steps to Reproduce Problem:
1. get an image [I used a web image]
2. set it as the image paramater
3. enabled stretching
4. run the world, and see the image is stretched, with color problems!

Expected Results:
An image with few to no problems in terms of color and quality
Actual Results:
An image with colorful lines in some areas.
Does the problem occur:
Every time? Or how often? Yes.
In other games? I'd assume so.
In other user accounts? Yes.
On other computers? Yes (Lummox JR and I count as two different computers, don't we?)

When does the problem NOT occur?
When you don't stretch.
Workarounds:
Resize the image yourself then upload it.