i can not find any information about support of lossless JPEG in FastStone image viewer. it only support "lossless jpeg transition/rotation", but it isn`t "Opening Lossless JPEG". Have you tried another image viewers to open this jpg file? if yes, please share it names and results.
I successfulopen 1.jpg in ViewMed (from Pegasus) and VaryView apllications and i just don`t know another application with Lossless JPEG support.