I have tried the JPEG Decode with a different application. I found that JPEG Decode has a memory leak and crashed my program. Since I have an edge profile application, I need to use TIFF, not JPEG.
PixeLink provides a VI which converts the data stream into either BMP, TIFF, JPEG, or PSD format, all represent as 1-D array of U8.
After speaking with an applications engineer this morning, he suggest using Write Custom Data.vi. It is a newly available function in NI Vision 7.1 which will take an array of u8 and convert it to an IMAQ image indicator. It apparently works with any image format.