Oh, it took me a moment. You are inserting the image in Design/Page Color. It shows up in my view of the page, but it's not selectable, and I had to convert the document to a web page in order to extract the background image.
Your method does work. I'm just accustomed to having to change letterhead backgrounds behind documents on the first page, or behind the first page of every section, which is why doing it within a header works for me.
I'm not sure whether you would use this background in every document, or whether you use different ones. I've created a new blank document page with your image inserted in the header, full page size and centered. If you select this and insert into Quick Parts, you should be able to insert it into other documents in the same format without having to reset the size, text wrapping, or positioning.
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