office 98/word 40kb doc + 600kb photo = 3.2Mb doc

Hi Folks
I am running OS 9.2.2 and Office 98 on an iMac 350Mhz with 256 Meg Ram and
still have memory issues. The current problem is with inserting photos into
a Word document.
I have a document that is approx 40 kb (1 page) and insert a photo (600 kb)
and the resulting document is 3.2Mb, and after a couple more (600kb) photos
(@ 3.2 Mb a time) I have a massive that document that is too big to handle.

What have I done/can I do? Why is it so?

Thanks
John

.

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