You don't need to make it transparent if you're going to type on top of it,
but I suspect what you mean is that you want to "wash it out" and use it as
a watermark. If you are using Word 2002 or 2003, use Format | Background |
Printed Watermark. Select "Picture watermark" and browse to your photo. For
previous versions, see “HOW TO: Create a Watermark in Word 97 and in
Microsoft Word 2000†at http://support.microsoft.com/?kbid=211324
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