A few short excerpts of Ten Years Old can be found online. I managed to track down the entire film through realclassicsdvd.com, and bought a copy to see for myself. I took a look, and spotted the image at the center of the long running speculation.
Early on, Joe makes himself a party hat from a old newspaper. And on that newspaper is the image in question. It is just a Louise Brooks look-alike, and not the actress, in my opinion. What do you think? Here is a screen capture.