Thanks. I will try the text box option. I bet that will help.

For the picture without a text box, setting the position to absolute by margin or page did not work.

In my most recent encounter with this problem, I had the picture rotated 8 degrees. I noticed that when I put the picture back to 0 degrees rotation, Word managed to follow the positioning settings. So I went to Photoshop, rotated the picture to 8 degrees, and inserted that picture into Word. As long as Word didn't have to calculate the rotation, it held that picture in place.