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limbo - 4:19 pm on Oct 11, 2007 (gmt 0)
There's a setting in Word (and PowerPoint) that let's you optimise the image within the document: on the picture tool bar there is a tool called 'compress image' (picture with arrows pointing at it's corners) - You can apply it to all pictures in a document or just a selection - you can change resolution for screen (92dpi) and also delete cropped areas from images - handy for screen shots. Of you could batch process all your images before you insert them...
Word embeds the images - no linked files.