To further the spirit of the topic:

picture: An individual painting, drawing, or other representation on a surface, of an object or objects; esp. such a representation as a work of art. (Now the prevailing sense.)

image: An optical appearance or counterpart of an object, such as is produced by rays of light either reflected as from a mirror, refracted as through a lens, or falling on a surface after passing through a small aperture. Such an appearance may also be a mere subjective impression on the sense of sight, as an after-image (q.v.), and the negative image or accidental image seen after looking intently at a bright-coloured object, and having a colour complementary to that of the object. An image produced by reflexion or refraction is called in Optics a real image when the rays from each point of the object actually meet at a point, a virtual image when they diverge as if from a point beyond the reflecting or refracting body.

Source: the interweb. Fight me.