Hi Gary,
This is from Word 2003's VBA help.
InLineShape ...
Represents an object in the text layer of a document. An inline shape can
only be a picture, an OLE object, or an ActiveX control. InlineShape objects
are treated like characters and are positioned as characters within a line of
text. The InlineShape object is a member of the InlineShapes collection. The
InlineShapes collection contains all the shapes in a document, range, or
selection.
Shape...
Represents an object in the drawing layer, such as an AutoShape, freeform,
OLE object, ActiveX control, or picture. The Shape object is a member of the
Shapes collection, which includes all the shapes in the main story of a
document or in all the headers and footers of a document.
A shape is always attached to an anchoring range. You can position the shape
anywhere on the page that contains the anchor.
Note There are three objects that represent shapes: the Shapes collection,
which represents all the shapes on a document; the ShapeRange collection,
which represents a specified subset of the shapes on a document (for example,
a ShapeRange object could represent shapes one and four on the document, or
it could represent all the selected shapes on the document); the Shape
object, which represents a single shape on a document. If you want to work
with several shape at the same time or with shapes within the selection, use
a ShapeRange collection.
Regards.
Ed