Your problem can't be diagnosed via screen shots in Word. You need to see if there are any objects sitting in front on the graphic in Publisher by doing a Select All and seeing what gets selected. If that doesn't reveal anything then see if there are any filter settings applied to the image.

If you still have the problem, try replacing the graphic with another image - it could actually be artefacts in the image you have chosen.

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Andrew Lockton
Chrysalis Design, Melbourne Australia