In the last couple of months I have starting having problems pasting images
from websites into Word 2003 (or Outlook with Word as the editor). I
commonly am pasting a page full of text and images. The text display
properly and the space for the image is there, but not the graphic itself.
This happens with both photos and with charts/graphs etc.

Here are some things I've tried that *didn't* solve it:

-Modifying the placeholder settings in Word
-Modifying the drawing settings in Word
-Turning off/modifying hardware acceleration on the graphics chip (display
settings)

I've noticed that if I am just copying an image and I select "Paste Special"
and I use "Device Independent Bitmap" the image displays. However this isn't
an option when I am copying a combination of text/images.

I have this behavior on every website. I also have a colleague with
basically the same system and he does NOT have this problem.

I assumed that this was the result of a security setting change with
Microsoft Updates but I can't figure out what it is.

Any ideas?