|since JPG is a univeral graphics format, any image-editing software of today and going back even ten years or more should be able to save images in that format.|
I can't any find info on which old versions of Corel PhotoPaint support layers. in any event, those versions you've mentioned are very old and and are no longer available.
If you want to work with images you'd be better served by using your modern version of Windows and using a free image editor which is up to date. There's a selection of them here: http://graphicssoft.about.com/od/pi...
I'm puzzled as to why you feel the need to use a dinosaur OS like Windows 3.1 when you've got Windows 7. Windows 3.1 was the version I had on my first PC almost twenty years ago!