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Default Scanned signature does not move with text?

Inserted scanned signature into original document and did a mail merge.
Signature picture was made transparent and formatted with "move object with
text" selected, however, the picture does not move with the text. If the
address in one of the merged letters has more lines, the text moves down over
the signature. This did not happen with Word 2000. Anyone know how to fix
it or is it a glitch?
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