I recommend Shyam Pallai's Image Inserter Wizard - especially if you have a lot of images to insert. Does most
everything for you including autosizing imaages to overcome the problem that you encounter. Look here: http://skp.mvps.org/
As well as Bill's suggestions (which are good!) you might also want to try -
choose a layout with a content placeholder. Size the content placeholder if
necessary and select it then paste. The picture should fit the placeholder.
You might want to also run the comress picture tool to avoid large files.
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