[Jesper]

I got an official response from Microsoft that this is a bug they are aware
of. No word on when/if it will be fixed.

"Russell Profitt" wrote:

Did you ever get a solution to this problem? I am having the same issue. I
save the word document with our letterhead image as a docx document and the
image does not show. I save the same document as a doc document and the
image shows. Some things in Office 2007 are driving me crazy. Any help
would be greatly appreciated. Thanks, Russell

"Jesper" wrote:

I am running into a strange problem that has appeared in Word 2007:
If I use draft view and insert a picture that is "in line with text", the
picture is:
-Visible if I save the document in .doc format.
-Invisible (rendered all white) when the document is in .docx format.
-Visible if I save in .docx but with "Maintain compatibility with Word
97-2003"

This cannot possibly be a "feature", right? It is still present in SP1.
Are other people having the same problem?