no. do this.
image NPC01 0 3
this loads frame0 frame1 frame2 and frame3 (aka idle, death 1 2, corpse from the entity "NPC01" into memory
state IDLE NONE 0
frame 0 0.25 0 0 0 NONE
frame 1 0.25 0 0 0 NONE
frame 2 0.25 0 0 0 NONE
frame 3 0.25 0 0 0 READY
this declares that when the state "IDLE" happens, the entity should display the 4 frames (0 to 3) from "NPC01" and that each frame should be display for a quarter of a second, and finally that when the frame 3 is finished, the entiy is "READY" so it can become a new state (or repeat it's same state, so IDLE state will just run in a loop if you don't kill the NPC.
oh and also make sure your file in /States/ is "DecorationName.states" so NPC01.states
it is states with s at the end, not .state
i fucked that up when i first started using states