Quote: "Are you constantly updating your image every frame?"
Yes, because it's a screenshot of a single moving object in a dynamic scene.
Quote: "( Outside of loop, only needs to be done once )"
No, it needs to be done every frame. Have a look at my latest, totally impractical, demo on the Learning to Write Shaders thread.
In that demo each object has a different dynamic cube map applied to it - although the same image memory is re-used for the purpose. Each object is rendered on its own to a "masking" image as soon as its cube map is rendered. This image is then pasted onto the final screen bitmap - but only the object is rendered hence the need for set image colorkey.
If the objects are static then everything is much simpler as you say.
Quote: "Edit : I meant mode 2 not 3 when I was talking about it... sry..."
Actually I found mode 1 worked - but you couldn't guess that from the Help file.