Jeroen,
The "Use first image in K2" setting only works for images in the articles text. It doesn't work with K2's "Image" tab where you can set an image for that article. The reason is because, in our content plugin, we're only handed the text of the article by K2. We can't see the 'item image' that is set directly. It's something we're looking into to figure out how to do, but don't have any great solutions right now.
So, in this case, we won't be able to automatically add the image, but you can do so manually by placing the following text in the article:
{JFBCGraph image=http://site.com/link-to-your-image.jpg}We'd recommend placing that tag at the end of your article so that it doesn't mess with some of the K2 logic for using the first 100 chars of intro text for certain things.
I know this isn't optimal, but hopefully, helps you accomplish what you're trying to do. We'll be looking to find a better solution for using the Item Image, and will update JFBConnect in a future release with that ability.
Hope that helps explain,
Alex