I had originally ateempted to use this idea for my game, although it appeared to fail miserably. Scripting technically should allow it, but you'd have to include storyzones into the picture somehow--just using images wouldn't pause the game, meaning you'd be open to attack...
So, I decided to take advantage of the image script readily available (until I modified it a bit more to cater my needs). I just threw together a folder and paper texture, and ended up with a modifiable folder to show whenever the player gets particularly close to the file in question. It works particularly well, although it delays the appearing of HUD messages (which can be annoying). The script I originally used is this:
;Artificial Intelligence Script
;Header
desc = Display a custom message on screen
;Triggers
:state=0:hudreset,hudx=50,hudy=50,hudimagefine=[[[path of dds or tga]]],hudname=msgprompt1,hudhide=1,hudmake=display,state=10
:state=10,plrdistwithin=50:hudshow=msgprompt1,hudfadeout=msgprompt1
;End of Script
Can't actually remember who created it, apologies.
Evil has a new name. Demo out now!