Now that the MAPIINSERT command discrepancy is out of the way, and you're still having issues this seems like it has to do with the image file itself.
I suggest you take a smaller .jpg or .tif other than the one you're trying to work with and try the same methods. If there is a secondary file (world / coordinate file) it needs to be saved in the same folder with the same file name. I wouldn't be surprised if it has something to do with the size of the file. I can't imagine you'll be able to do anything in civil 3d with that loaded. Maybe turn on the image, plot, and turn off the image.
We've had to go with ECW or MrSid files in the past that offer some form of compression when dealing with larger image files, but lately those file types have had some issues as well, so I can't speak for the validity, since we've gone with Geotifs lately.
Basically, try MAPIINSERT on an image that is only a few MBs vs 9 GBs and see if you can get it to work. If you can, then it's a case where you should go back through your imagery sources and ask for a compressed version or proceed to find a company that can charge you a fee to compress the image file down to something you can actually use. Usually the software that does this is pretty pricey from what we could find when we were looking into acquiring the software.
Note: Initially I thought it might have something to do with the file being saved to a location that wasn't "trusted" but, when I worked through this same thing in an untrusted folder location on C drive it worked just fine on a .tif file.
