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Mastiff Mastiff is offline
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Default Word 2003: in line with text still on top

I have two word documents and all I'm trying to do is paste a picture from one into the other, in line with text. I copy it, then paste into the other and it lands about half way up the page in some random spot on top of the text. I select it, go to layout and choose "in line with text". It moves down, so that the bottom of the figure box is at the point where it should be inserted, but the box is clear and covers over the text above it. I've been fighting this for an hour. Any ideas?