I am using Word 2008 for Mac running on Max OSX 10.7.5

I want to make name tags and insert a picture background and make it transparent. I went to the first tag and inserted the picture and formatted it. Then I copied it and pasted to the rest of the name tags. Unfortunately, the picture wouldn't fit to cover the whole tag. I have so much trouble with pictures every time I try to do something with it. Do I have to create a text box and insert the picture into it?

I also want to put the name of our committee on each tag and format the font differently from the name. I want to format the name with a different font color and then merge with another Word document secondary file. It is not working for me! Should I format one name tag and then copy it to the others and then save it as a template. Then do the merge?

Whatever I try is NOT working for me. Could someone please help me? I tried the help pages, etc. and can't find anything on this.

I would SO APPRECIATE some help! I originally tried doing this on Avery's DesignPro and got so far. Their help is non-existent, so I'm trying Word. So far both are equally frustrating.