Hello biker9,
when you use CopyPicture, you are copying the image as it appears on the screen. The print settings for the shape are ignored. It's rather like taking a screenshot, not like sending the range to the printer (in which case the shape would not be printed).
As a workaround, you can set the fill and border of the shape to msoFalse before copying the range (as a range or a picture) and then, after the copy operation, restore the fill and border (with msoTrue)
The attached code snippet works on your example.
cheers, teylyn