Problem inserting Picture links from various network shares Word 2

[SENMAN]

I save a blank document on a network share say W:\test.doc I open this
document and click “insert†“picture†“from File†Browse to my W:\ and find
pic.jpg and choose “Insert†“link to file†and save the document and close
and reopen the file. I toggle “ALT F9†and the linked picture appears fine. I
decide to add another picture link for a file on the R:\ called pic2.jpg to
the same document and follow the same instructions above. I save and close
word, open the “test.doc†again and for some reason the linked file from R:\
just comes up as an empty box with the red microsoft “X†in the top left
corner, but pic.jpg looks great.

The file linked from W:\ has the following link code
{INCLUDEPICTUREâ€../../../pic.jpg†\*MERGEFORMAT \d }
This works.

The file linked from R:\ has the following link code
{INCLUDEPICTUREâ€../../../reports$/pic2.jpg†\*MERGEFORMAT \d }
This does not work.

the user has read/write access to both network shares

Any suggestions to this dilemma?