For this approach to work, you need to have a windowing environment to render the image in.
You can either:
- run an X server in the virtual machine or
- run an X server on Windows, then SSH from Windows to the VM (with X tunnelling enabled) before running
display
Alternatively, share the file over the network (e.g. use VMWare's shared file systems, or run Samba or use an HTTP server) and view the image using a Windows image viewer.
Alternatively, convert the image to ASCII Art so it can be displayed on a console.