What View are you using? [Check in the View menu or the View buttons in the
lower left corner of the document window.] Graphic objects do not display in
Draft or Outline Views. If you switch to Print Layout View or Print Preview
you should be able to see them.
If you are in Print Layout View & still can't see the images go to Word>
Preferences> View to make sure that Drawings is checked & that Picture
Placeholders is not checked.
If these points don't resolve it, make sure you have Office fully updated
(12.2.3 is the current update level) & that you have OS X at the 10.6.2
update level.
BTW: drag 'n drop is not the preferred option for adding graphics to a Word
document. No offense, but that method is a sucker's shortcut which bypasses
Word's graphic import filters & can result in less than desirable printed
output. Use the Insert> Picture> From File method or use the Object Palette
in the Toolbox. Its 'Photos' button provides access to the content of your
iPhoto Library as well as other sources of images.
HTH |:>)
Bob Jones
[MVP] Office:Mac