Office 2007 has a new feature that reduces the resolution of import images in order to reduce the overall file size of Office document.
Example:
1. Import of high resolution image into Word.
2. Then reduce the size of the image to 10% of its orginal size.
3. Now save the Word document and exit Word.
4. Restart Word and open the previously saved document.
5. Look at the size of the image you reduced in step 2. It now says 100%. Older versions of office said 10%.
6. If you ever want to enlarge this image in the document, the resotuion of the original image is lost and enlarging will result in a grainy image.
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