(1) Imported, <linked> .png and .gif files behave in the same way, i.e., you can import the files by linking to another folder, resize them, and the Edit Picture option is not available. When you save and reopen the file, the images retain the size settings.

(2) However, when you click one of these images and press F9, the image is reimported at 100% (sizing is lost). The same behavior happens when you print these images.

(3) When you import and <embed> the .pngs and .gifs, you see the same behavior as in (1) but not as in (2). These images retain their size settings.

(4) Imported, linked .eps files behave differently. For those images, the Edit Picture option is avaiable. When you select Edit Picture, the image is placed inside a frame and converted into an editable object. Linking information is apparently lost and I assume Word has embedded the object.

So I'm back to square one. (I wonder if this has changed in Office 10.) Thanks for your attention, even if you don't have a solution.

-BZ