
I don't know the specifics of the compression algorithm, but I've used the
shareware program, PaintShop, to convert between the two.  You can download
it from ftp.cica.indiana.edu, but I don't know what the file is called
or what directory it is in (you can start by looking in pub/pc/win3 or try
scanning the index files).

To convert a .BMP file to a .RLE file, you just load the .BMP file and do a
"Save as..."  Select "Windows bitmap" and "Compressed" (or is it "RLE"?)
Whatever it is, it's fairly intuitive...

Sorry I don't have all the details, but I'm currently on an IBM3151 dumb
terminal and can't do much researching...Good luck!
 