Sounds like a video driver issue.
Try this, slide the acceleration down on your adapter, control panel, display,
settings tab, advanced button, troubleshoot tab. (About three notches)
If this solves your issue, go to the manufacturer's web site and look around for an
updated graphics driver.

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Mary Sauer MSFT MVP
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> When I use Publisher 2003 to create a website, I select the template first
> and that loads up, however, none of the images display correctly (if I turn
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> I can edit/arrange them properly, without resorting to switching between
> preview and normal mode?