Thanks all, that helps explain it. Another quick question though, if I slightly modify Sergey K's code:
load image "test.jpg",1
sprite 1,0,0,1
set sprite 1,1,1
hide sprite 1
sync on
sync rate 60
for x=1 to 200 step 5
paste sprite 1,x,100
text 0,0,"Hello World"
sync
next x
wait key
... two things happen: the background remains black and the sprite DOESN'T restore the background. Without the SET SPRITE command the background goes the usual blue and background is restored. It doesn't seem to matter whether the backsave flag is set to 1 or 0, the result is the same.