diff --git a/ArcFormats/Liar/ImageLIM.cs b/ArcFormats/Liar/ImageLIM.cs
index 8b222876..65f077f1 100644
--- a/ArcFormats/Liar/ImageLIM.cs
+++ b/ArcFormats/Liar/ImageLIM.cs
@@ -31,6 +31,11 @@ using GameRes.Utility;
 
 namespace GameRes.Formats.Liar
 {
+    internal class LimMetaData : ImageMetaData
+    {
+        public int Flags;
+    }
+
     [Export(typeof(ImageFormat))]
     public class LimFormat : ImageFormat
     {
@@ -42,14 +47,13 @@ namespace GameRes.Formats.Liar
         {
             if (0x4C != stream.ReadByte() || 0x4D != stream.ReadByte())
                 return null;
-            int flag = stream.ReadByte() & 0xF;
-            if (flag != 2 && flag != 3)
-                return null;
-            stream.ReadByte();
             using (var file = new ArcView.Reader (stream))
             {
+                int flag = file.ReadUInt16();
+                if ((flag & 0xF) != 2 && (flag & 0xF) != 3)
+                    return null;
                 int bpp = 0x10 == file.ReadUInt16() ? 16 : 32;
-                var meta = new ImageMetaData { BPP = bpp };
+                var meta = new LimMetaData { BPP = bpp, Flags = flag };
                 file.ReadUInt16();
                 meta.Width  = file.ReadUInt32();
                 meta.Height = file.ReadUInt32();
@@ -59,8 +63,7 @@ namespace GameRes.Formats.Liar
 
         public override ImageData Read (Stream file, ImageMetaData info)
         {
-            file.Position = 0x10;
-            using (var reader = new Reader (file, info))
+            using (var reader = new Reader (file, (LimMetaData)info))
             {
                 reader.Unpack();
                 return ImageData.Create (info, reader.Format, null, reader.Data);
@@ -81,16 +84,18 @@ namespace GameRes.Formats.Liar
             int             m_width;
             int             m_height;
             int             m_bpp;
+            int             m_flags;
 
             public byte[]        Data { get { return m_image; } }
             public PixelFormat Format { get; private set; }
 
-            public Reader (Stream file, ImageMetaData info)
+            public Reader (Stream file, LimMetaData info)
             {
                 m_input = new ArcView.Reader (file);
                 m_width = (int)info.Width;
                 m_height = (int)info.Height;
                 m_bpp = info.BPP;
+                m_flags = info.Flags;
                 if (32 == m_bpp)
                     Format = PixelFormats.Bgra32;
                 else if (16 == m_bpp)
@@ -106,10 +111,32 @@ namespace GameRes.Formats.Liar
 
             public void Unpack ()
             {
+                m_input.BaseStream.Position = 0x10;
                 if (32 == m_bpp)
+                {
                     Unpack32bpp();
+                }
                 else
-                    Unpack16bpp();
+                {
+                    if (0 != (m_flags & 0x10))
+                    {
+                        if (0 != (m_flags & 0xE0))
+                            Unpack16bpp();
+                        else
+                            m_input.Read (m_image, 0, m_image.Length);
+                    }
+                    if (0 != (m_flags & 0x100))
+                    {
+                        if (0 != (m_flags & 0xE00))
+                        {
+                            m_output = null;
+                            UnpackChannel (3);
+                        }
+                        else
+                            m_output = m_input.ReadBytes (m_width * m_height);
+                        ApplyAlpha (m_output);
+                    }
+                }
             }
 
             void Unpack32bpp ()
@@ -196,24 +223,23 @@ namespace GameRes.Formats.Liar
                         }
                     }
                 }
-                if (m_input.BaseStream.Position < m_input.BaseStream.Length)
+            }
+
+            void ApplyAlpha (byte[] alpha)
+            {
+                var pixels = new byte[m_width*m_height*4];
+                int alpha_src = 0;
+                int dst = 0;
+                for (int i = 0; i < m_image.Length; i += 2)
                 {
-                    m_output = null;
-                    UnpackChannel (3);
-                    var pixels = new byte[m_width*m_height*4];
-                    int alpha_src = 0;
-                    dst = 0;
-                    for (int i = 0; i < m_image.Length; i += 2)
-                    {
-                        int color = LittleEndian.ToUInt16 (m_image, i);
-                        pixels[dst++] = (byte)((color & 0x001F) * 0xFF / 0x1F);
-                        pixels[dst++] = (byte)((color & 0x07E0) * 0xFF / 0x7E0);
-                        pixels[dst++] = (byte)((color & 0xF800) * 0xFF / 0xF800);
-                        pixels[dst++] = (byte)~m_output[alpha_src++];
-                    }
-                    m_image = pixels;
-                    Format = PixelFormats.Bgra32;
+                    int color = LittleEndian.ToUInt16 (m_image, i);
+                    pixels[dst++] = (byte)((color & 0x001F) * 0xFF / 0x1F);
+                    pixels[dst++] = (byte)((color & 0x07E0) * 0xFF / 0x7E0);
+                    pixels[dst++] = (byte)((color & 0xF800) * 0xFF / 0xF800);
+                    pixels[dst++] = (byte)~alpha[alpha_src++];
                 }
+                m_image = pixels;
+                Format = PixelFormats.Bgra32;
             }
 
             void UnpackChannel (int card)
@@ -267,7 +293,7 @@ namespace GameRes.Formats.Liar
                         count += 2;
                         for (int i = 0; i < count; i++)
                         {
-                            if (dst + 1 >= m_output.Length)
+                            if (dst >= m_output.Length)
                                 return;
                             m_output[dst++] = m_index[index];
                         }