Please Note: This article is written for users of the following Microsoft Word versions: 97, 2000, 2002, and 2003. If you are using a later version (Word 2007 or later), this tip may not work for you. For a version of this tip written specifically for later versions of Word, click here: Dragging and Dropping Pictures in a Document.
For years Sam could easily insert a JPG picture into a Word document by dragging the file from an Explorer window (instead of the drudgery of inserting a picture via the Insert menu). One day this capability quit working on his system, and now when he drags-and-drops a picture, all he gets is an icon and the filename. Sam wonders how he can get this long-used feature back.
The solution to this problem could be quite simple—it sounds like you are possibly seeing field codes instead of the results of those codes (the actual image). Next time you drag-and-drop an image, press Shift+F9 to toggle between field codes and field results. If this setting is the cause, then you should see your full image shortly appear.
WordTips is your source for cost-effective Microsoft Word training. (Microsoft Word is the most popular word processing software in the world.) This tip (4077) applies to Microsoft Word 97, 2000, 2002, and 2003. You can find a version of this tip for the ribbon interface of Word (Word 2007 and later) here: Dragging and Dropping Pictures in a Document.
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Please Note:
This article is written for users of the following Microsoft Word versions: 97, 2000, 2002, and 2003. If you are using a later version (Word 2007 or later), this tip may not work for you. For a version of this tip written specifically for later versions of Word, click here: 
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