I've always been a little suspicious of the graphics tools built into
Word. It's a *word processor*...
Instead, I'd suggest working with the file in a graphics editor first.
One good choice is IrfanView (
www.irfanview.com), which is free. An
excellent choice is Snagit (
www.techsmith.com), which has a free trial
download but is well worth the price to purchase a license.
These instructions are for working in IrfanView. Open either the .tiff
or the .jpg file. Click Image > Information and look at the Number of
Unique Colors item. If it doesn't say 2, click Image > Decrease Color
Depth; select 2 colors and click OK. This makes sure there aren't
pixels of something other than black and white.
Save the file under another name, choose the GIF format, and in the
Save Options box check the option for "Save transparent color". (Most
other formats don't store information about transparency.) When you
click OK, you get a box that lets you click on the white background to
identify it as transparent.
Insert that GIF file into the Word document. The text wrapping you
choose won't make any difference with respect to the watermark, which
is in a layer behind everything else.
--
Regards,
Jay Freedman
Microsoft Word MVP
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