picture encryption

Sometime back someone mentioned a program that would hide messages inside a picture, by replacing the LSB of the color with the message. Does anyone know where I can get this?? I was thinking that if they outlawed high strength encryption (non GAK approved), not letting them realize that you were sending encrypted information would be an excellent alternative. Of course the message hidden in the image would be encrypted as well. You could spend many months on trying to break the key, only to find out that it was really only a picture. /sb