Word 2008: unable to insert image once document is saved



I know at least one other person reported this, but the proposed
workaround isn't working around. I'm running Word 2008 with SP2 and
once I've saved my document, if I try to insert an image using the
Insert Picture command, I get an error message saying that the image
format is not recognized by Word. This happens whether the image is a
PNG, JPG, TIFF, etc. If I drag the image into place, it's fine, but
then my PC colleagues can't see the image (the image has to be
inserted using the command). Interestingly, if I create a new document
that has not yet been saved as a .doc file, I can insert any image to
my heart's content. I tried closing the formatting pallette, but that
didn't solve the problem. I also tried saving as a .docx, but once the
document has been saved in any format, it can't accept images except
by dragging them into place. This wouldn't be so bad if Windows-based
computers could see the images I've inserted by dragging, but they
often can't.

Suggestions? Thanks!
.



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