I teach. I have group of students working on a project, lots of drawing objects, text boxes and such. Sometimes, when they paste in a picture copied off a website, then immediately format it to "in front of text" then try to place it, it will "jump" (usually up), using the any arrow key to move causes it to jump up (despite down arrow or right or left). I've investigated the grid options and such. I've removed all other objects from a sample and still, this picture jumps, any other pictures pasted or inserted also jump. A new document created on the same machine, same user, same picture does NOT jump.
Wondering, what, if anything can be done.

Can you put that document with "jumping" picture here?

Yep
wait
as soon as I resaved as a pre 2007 type document, the jumping stopped. Guess I can't up load the crazy one.

I have a similar problem from time to time, including right now. I have inserted a jpg. I rotated it slightly. I set text wrapping to tight. Picture position is absolute relative to margin for both vertical and horizontal. I nudge the picture to the position I want. As soon as I start typing or change the view, the picture jumps to a different, nearby position.

It seems like a bug to me, because even when the picture moves on its own, the text remains wrapped to the picture's former position. Is anyone familiar with this challenge?

I just figured out a work around to my problem. I set the text wrapping to square or in front of text, and the picture stays put. When the picture is in front of text, I can then draw a white line beside it which is set to text wrapping tight and right side only. I use this invisible line to control how the text lines up in relation to my picture. It works, but it seems like extra trouble. I would be interested if anyone knew a more efficient way to deal with this challenge.

So far my "fix" has been to use "save as" to save as a pre-Office 2007 document, this might create more trouble in other areas but it has worked to fix our "jumpy picture" syndrome without causing other issues so far on this project.

I tried saving as a Word 2003 .doc this time, and it didn't make a difference. However, saving as a 2003 Word doc does help when I am trying to line up bullets and text with a picture nearby. 2007 has trouble honoring the margin and indent settings when it has to layout a picture near an unordered list.