Hi Bob,
http://support.microsoft.com/default.aspx?scid=kb;en-us;167622 Microsoft
Knowledge Base Article - 167622
WORKAROUND
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To work around this problem, use any of the following methods.
Method 1: Save As Word 6.0/95
From Word 97, save the file in the Word 6.0/95 file format.
Method 2: Click to Select the Save With Document Check Box
In Word 97, when you click the Link To File check box while inserting a
picture, do not clear the Save With Document check box. Then, save the
document in Word 97 format and open the file in Word 7.0.
Method 3: Clear the Float Over Text Check Box
In Word 97, when you insert a linked picture, clear the Float Over Text
check box. Then, save the document in Word 97 format and open the file in
Word 7.0.
STATUS
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Microsoft has confirmed that this is a problem in the Microsoft products
that are listed at the beginning of this article.
Please let me know has this helped...
Thank you...
Raghu...
This posting is provided "AS IS" with no warranties, and confers no rights.