It sounds like two things are happening:
1. Wrapping is set to In line with text, and
2. Paragraph spacing is set to Exactly #, where # is less than the amount
needed to display the clipart.
You should be able to fix the immediate issue by right-clicking the
paragraph marker where the picture resides, choosing Paragraph, and setting
Line Spacing to Single. (There are a variety of ways to fix this... this is
just one of them.)
If this is happening all the time in all documents, a longer term fix would
be to change the default formatting for paragraph spacing (Exactly is not
the built-in default, and is a setting that can create a number of
problems -- it sometimes results from pasting text from other sources, such
as web pages, where Exactly spacing is used with wild abandon by web
designers). So, if this is happening all the time, the quick & easy solution
is to delete Normal.dotm and let Word create a new one.
Another solution would be to change the default method for inserting
pictures to something other than In line with text (which is done in Word
Options - Advanced - Cut, copy, and paste section. If your default paragraph
spacing is set to Exactly, however, you will invariably end up with related
problems in the future, not ncessarily related to graphics (i.e., clipped
text).
