David,

I tried a blank design with just a bmp for positioning referrence and adding
a fragment below but not touching it.  Still the same problem.  I also tried
putting the fragment on the bmp and got the same problem.

I have tried to alter the size of the fragment box and it doesn't seem to
matter.

I haven't tried adjusting/turning off the snap to grid.  While I will
entertain the idea (what else do I have to do with my time), but I am a
little pessimistic.  Web design is fun!  

BTW - I really appreciate your help - Thanks

DavidF,
on code frags - what you would be experiencing in 2000 would be different
from what I've seen with 2003. (due largely to CSS2 and VML in 2003) What
you want to be sure and do DavidF is to determine about what dimensions on
the output your html code is going to render at and use that in the layout
stage. You need to size the code fragment box at as close to output size as
possible when doing the layout. Because when the html code is rendered by
the browser the browser will size everything on the page accordingly in
relation (as opposed to 2003's absolution). It takes a good understanding of
traditional html tables and cells to fully grasp the concept but I'll try to
explain- if you create a text box with a single line of text on the pub page
and just to the right of it you place a code fragment with html code that
will render a graphic of 125 pixels by 125 pixels but you size the fragment
box to the same height of the text box to it's left then the rendered output
will be a 125 px tall graphic on the right and on the left a line of text
with tons of blank space under it (and pushing down any content you designed
below it). That is because the table cell containing the text has to be
sized by the browser to match the neighboring cell holding that graphic
which relationally sized the cells to 125 px height. So the best way to
design the layout is to size the fragment box at 125 x 125 on the pub page
and then size the text box to the same height and use that content area
accordingly. Unfortunately 2000 has no pixel measurement (I finally got it
into 2003) so you have to draw those fragment boxes at "roughly" the same
area, 100 pixels is "roughly" an inch. If you always draw code fragments at
about the same size has the output area then layout the page accordingly
then your rendered page (using version 2000) should be pretty accurate to
the design page.

David Bartosik - [MSFT MVP]
www.publishermvps.com
www.davidbartosik.com