Still looking for an answer.

When I right-click the image, I see 'Edit Picture' in gray, i.e., inactive. (I do not see 'Edit Image'.) I believe that Edit Picture is for drawings created in Word, although I'm not sure because I never use that feature.

I also have the Format Picture option, which is where I adjust the size of my imported image (usually a screen grab, but sometimes an eps image). The Format Picture dialog has no way to lock the settings you assign.

What's interesting is that when I reopen the document, the size of the images is correct. However, if I click the image and press F9, Word reimports the image at 100% (abandons the sizing). This is a fatal problem because everytime I print, the print function reimports the image and drops the sizing information.

I did not see this behavior in Word 2003 and earlier versions. This is an unfortunate breakdown, because my documents are graphics intensive. If I have to embed every image, then my file size grows astronomically, and my ability to update images (with replacement images) is made much more inefficient.

Once again, thanks to anyone who can help.