Hi Debby,
When you insert a picture then select it, when the
picture toolbar appears one of the icons is for 'color'.
Under the color icon, one of the four choices is 'washout'
(in newer versions of Word). All that setting does is
create a preset value under Format=>Picture=>Picture
of 85% Brightness and 15% Contrast. You can use that
preset for a 'speedy' way to 'fade out' a picture, but
you can also use any manually selected value you choose.
If you use the Format=>Background=>Printed Watermark choice
that Kate mentioned and choose to insert a picture and check
the 'washout' setting Word applies that same preset contrast
& brightness value.
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would like information on creating washouts >>
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I hope this helps you,
Bob Buckland ?

MS Office System Products MVP
*Courtesy is not expensive and can pay big dividends*
The Office 2003 System parts explained
http://microsoft.com/uk/office/editions.asp