Of course a Static control can display color images. The article focuses on a specific situation (creating a monochrome bitmap from raw data) that you need not worry about.
The genral technique certainly does work. Follow the steps 1-4. To get the HBITMAP that you will use in your call to m_ctlBmp.SetBitmap( hBmp );
Use this function:LoadImage http://msdn.microsoft.com/en-us/library/ms648045(VS.85).aspx
For instance:
1: 2: 3:
HBITMAP hBmp= (HBITMAP)LoadImage( 0, "c:\\temp\\any.bmp", IMAGE_BITMAP, 0,0, LR_LOADFROMFILE );