Hi Talon,
First up, RM does not export images to AT5 (yet!). We may well add this in the future - possibly quite soon.
For now, you need to do this using the IMC, and if you are starting with a KML/Z file, then it is a two stage process (in the IMC).
Firstly, create your KML/Z file as you have done. If you create a KML file for your image, then the KML file only contains information about the image - you need to make sure that the original image file is in the same directory as the KML file when you run the IMC. If you have a KMZ file, then the image file and the KML calibration file will both be contained within it (KMZ files are just zip files that hold other files - it makes things a bit more convenient).
Now - the IMC:
The IMC raster process does not use KML files. Instead it used a different type of calibration file known as a "world file", with the extension .pgw. "Keyhole" mode in the IMC simply reads the KML calibration file, and produces an equivalent .pgw file that you can then use in raster mode.
(note: I have just run through this process, but I have used a KML file and an associated .png image file throughout - I cannot state for sure that this works exactly the same with KMZ files, because I don't have one to hand for testing).
1. Open up the IMC and go to Keyhole mode. Add your KML file, and make sure the image file is in the same directory. Click Build. You should now have a new file in the same directory as the KML file, with a .pgw extension.
2. Go to Raster mode in the IMC. You need to add your image file here. Note that the IMC accepts folders only here, and adds all image files within the folder. You can make your life simpler by making a new folder which contains just your .pgw and image file. Set an appropriate min and max resolution. These values refer to pixels per metre of your original image. The IMC will rescale your image to match the values you use. I wouldn't sweat this one too much - just run with 1 - 8 for now. You can play with these values once you get used to the process (to determine the native resolution of your image, divide the width in pixels by the width in metres. You can find the width in pixels by right-clicking the image in Windows explorer and looking at the properties). Set your work directory, and click Build.
You should now have some output files in a directory called "BoundAT5s" sitting underneath your build directory. Copy these to your map card in a directory called "ShadedRelief" located at the root of the card (to be honest, I am not sure if the shaded relief directory is actually necessary).
Give that a go and report back if you have any problems.
Matt