Don't start with the photo; start with the shape instead.
Click Insert > Shapes and choose the rounded rectangle shape (6th one
in the first row of the Basic Shapes group). Drag to draw the
rectangle. Drag the yellow diamond handle to change the radius of the
Right-click the rectangle and choose Format AutoShape. Click the Fill
Effects button. In the next dialog, click the Picture tab, click
Select Picture, and browse to find the picture you want.
When the AutoShape is selected, the Drawing Tools tab of the ribbon
appears. You can use the Shadow Effects buttons to pick a shadow,
although that will give you a flat shade rather than a gradient. You
might prefer the appearance you get from using the 3-D Effects button
and choosing a shallow depth.
Microsoft Word MVP FAQ: http://word.mvps.org
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