libjpeg is developed by the Independant Jpeg Group, and bears the 
super-permissive license:


"""
This software is copyright (C) 1991-1998, Thomas G. Lane.
All Rights Reserved except as specified below.

Permission is hereby granted to use, copy, modify, and distribute this
software (or portions thereof) for any purpose, without fee, subject to these
conditions:
(1) If any part of the source code for this software is distributed, then this
README file must be included, with this copyright and no-warranty notice
unaltered; and any additions, deletions, or changes to the original files
must be clearly indicated in accompanying documentation.
(2) If only executable code is distributed, then the accompanying
documentation must state that "this software is based in part on the work of
the Independent JPEG Group".
(3) Permission for use of this software is granted only if the user accepts
full responsibility for any undesirable consequences; the authors accept
NO LIABILITY for damages of any kind.

These conditions apply to any software derived from or based on the IJG code,
not just to the unmodified library.  If you use our work, you ought to
acknowledge us.
"""

This is clearly GPL-compatible.  Furthermore, libjpeg is incredibly stable, 
with its last release in 1998, and tiny at 599k.  Is there some issue with it 
that I don't know about?


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