I can insert picture as file, selecting a jpeg, png etc and it shows in a frame in a .doc file. As long as I keep the file open, I can see the picture, print the page etc. but if I save the file and come back to it later, the picture disappears and an empty frame is roughly where i left the picture. I have to re-insert the .png every time I open the file and if I send the .doc to anyone, they have to do the same.
Also I do have graphics set as visible and I am not inserting the picture as a link.