Hi caz46,

The difference is probably due to Word be unable to compress the embedded images. You could, of course, insert them as links, which would reduce the file size considerably. This also has the advantage of allowing you to replace one or more of the image files and having all the templates and associated documents update with the new image(s). The downside is that the images won't be available if you send the documents to someone without access to the folder in which the images are stored.

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Cheers,
Paul Edstein
[Fmr MS MVP - Word]