Have you checked whether your Office installation has the 'show picture placeholders' option checked? if it has, uncheck it. Likewise, have you checked whether your Office installation has the 'show drawings and text boxes on screen' option checked? if it hasn't, check it.
Otherwise, problems of this kind are usually attributable to the Office 2007 installation not being fully updated. Please check that your Office 2007 installation has all updates installed.
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Cheers,
Paul Edstein
[Fmr MS MVP - Word]
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