Just in case someone is searching for the same answer as I was there appears to be a second method to import an image into your document and using it as a background. What I found out was that in Word 2010 you can select the Page Layout tab, then select Watermark and Custom Watermark, next select Picture watermark and select the picture you wish to use as a background. The default Scale is "Auto" and I had to select 100% instead to make it work. So the image prints fully in your document, you'll also have to uncheck the Washout check box.

Once you have the image in your document as a watermark, you can save the document as a template if you wish to use it multiple times or simply continue editing the document if you only need to use it once.

Hope this helps others that may be seeking the same answer I was.