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Default How do I cut/copy & paste .jpg into MS Word text or an email text.

I can cut/copy & paste .jpg files/photos into Power Point and from one folder
to another easily, but cannot do it into the middle of MS Word text or into
the body of an e-mail. I have Windows XP, MS Word 2003, Yahoo e-mail.
Please tell me step-by-step.
Thank you.