For sine interpolation:
Lerp(0,IM.GetImageHeight, (1+Sin(LoopIndex("j")*180/IM.GetImageHeight))/2)
But that still won't eliminate the distortion at the poles.
Paul Brouke's method eliminates the pole distortion but causes seams because parts of the image are discarded.
<img src="http://local.wasp.uwa.edu.au/~pbourke/texture_colour/texturemap/sketch.gif" border="0"> The area in that shape is the only part of the image that is preserved.
The libnoise website it has some sphere textures that are distorted in a way similar to pbrouke's method but I think that it was generated special for spheres.
http://libnoise.sourceforge.net/examples/textures/index.html
Also the Photoshop method just blurs the texture near the poles, it would still have the pole distortion.