Hi Kevin,

It's a change in the Graphics handling of Office 2007.

Even when Insert=>Picture with a link and save as a Word 2007 .docx/.docm format the picrtures are handled as Open Office XML
(OOXML) Drawing=>Pic elements by the new Office 2007 graphics engine, XML file handler and object controls, rather than with Word's
IncludePicture legacy field. These '2007 style' pictures display have 'white pearl' sizing handles.

If you use Save As=>Word 97-2003 choice then the pictures will be converted to Word 2003 graphics (blue squate sizing handles) and
you will see the IncludePicture fields that are used for backward compatibility.

Without using a macro, you can use Insert=>QuickParts=>Field=>IncludePicture (which unfortunately doesn't have a  'browse' button to
pick the graphic) to insert a Word 2003 handled graphic in a Word 2007 (.docx/.docm) document .

You can add the Edit Links command to the Quick Access toolbar by right clicking on it in  Office Button=>Prepare or assign a
keyboard shortcut to it to save a couple of clicks.
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I have inserted a picture via "link to file" option and I want to see the
file path etc. The picture is set to inline with text.
If I click ALT +F9, other thingslike the caption field change to show the
link, but for some unknown reason, the picture does not show the link.
If I go to the Office button . Prepare .Edit links, I can see the path and
change references if I want.

All I want to do is toggle to see the link and have no idea why this does
not work for me.
Any help on this will be appreciated