There is no way to translate a BMP or JPG into a XDM or DEM. A BMP or JPG is an image. XDMs and DEMs are data files, containing the elevation data for a map.
What you CAN do is import the image onto another map, such as the Basrah Attack map and then add the buildings, etc. manually. It will not be exact, but it will be good enough for casual gaming purposes.
Here are the detailed instructions on importing and exporting maps:
http://www.prosimco.com/atf/tutorial...ap_drawing.htm
The basic procedure is that you load the "base" map you will copy over into the Power Toolkit. You then "export" a map as a bmp. You then cut the map that you want to make into the new picture map to the same size as the "export" map. Finally you "DX Convert" your sized image and import it into the ATF map. Voila! You have a map of Fallujah. You can then, manually, draw in the buildings, streets, rivers, etc.