When you open a Microsoft Office 2000 document in a Microsoft Office 2003 or in a Microsoft Office 2007 program, an image placeholder that contains a red X may appear.
This problem may occur when the document contains a damaged Joint Photographic Experts Group (JPEG or JPG) image. To help block potential security problems, when Office detects any file corruption, the image appears as a red X.
To work around this issue, insert an undamaged copy of the JPEG image. Another workaround is upgrading to Windows 7 and Office 2010 as this issue is not seen with this setup. In Windows XP and Office 2010, however, the image appears as a black box.