-Double-click the .jpg and it should open in "Windows Picture and Fax Viewer". -Right-click the image and select "Edit" it should open in MS Paint
-Press (Ctrl) + (A) to select the image
-Press (Ctrl) + (C) to copy the image
-Open Word 2007
-Press (Ctrl) + (V) to paste the image
You should now be able to add text, etc.