GeoTiffs can be/often are? calibrated as UTM as their embedded info...you might find this in the exif or ? "JPTIC"??(can't remember exactly without pulling it up ) in a picture viewer..
But you need mercator or (possible TM transverse mercator) calibration....
Also, embedded heights are useless so a flat picture like you have created is where to start. You need corner positions as Lat-Long to make it easy- perhaps you have these? Otherwise
usually the problem with the method you describe (tiff2bsb) is in the colours. You can only have 127! so check your image and reduce colours...in fact, best to reduce to 8,16,64 work fine on any chart /map to kap.
using imgkap alone is best because it doesn't care so much about numbers of colours and will reduce these....and will do all the work including spitting out an error with corrections if the image itself is sized wrong per proportions of pixels as lat and long. However, you can get sizing pretty close if you make sure a degree of longitude in pixels is sized to equal the cos of a degree of (central) latitude in pixels, proportionately. (Mercator)
The image you have looks pretty good as to proportion but huge mbs
images are not required...your resolution can be too fine so cutting it up into smaller bits will give you more workable and detailed kaps ...most kaps when finished are only 3 or 4 mb after all...
Code:
imgkap imagename.extension upperleft-lat upperleft-long lowerright-lat lowerright-long outputkap.kap
is all you need. tip: use quote marks around image names that include spaces..
When you get rolling, you can just type up a list of many
images to be converted,as above, change the name of your list to ".cmd", and slip it into where imgkap.exe and all your pictures are and double-click it. I've done lots and lots of Canadian Geotiffs this way, but, these come with a separate file that has lat long corners noted so that made it easier than yours maybe.
You might try something called GeoMetaData_Extractor...
FWTools: Open Source GIS/RS Binary Kit