I've seen this before when the computer runs out of resources and can't display the image. If you reboot the computer does the image show up properly?
See http://www.mvps.org/word/FAQs/AppErrors/RedX.htm
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Suzanne S. Barnhill
Microsoft MVP (Word)

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Words into Type
Fairhope, Alabama USA
Word MVP FAQ site: http://www.mvps.org/word
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> Please tell me WHY my inserted graphics look fine, and
> then turn into BIG RED Xs, when reopened!!! Does anyone
> know the answer to this???