I am not grasping this. This does not seem to me (at least in your original requrest) to be a label issue at all. It is a graphics issue.

What are you doing? You are replacing the pcx...with WHAT? JPG? You can certainly push data to Word and make labels.

You asked about formatting an image in Word. But it sounds like you are not "formatting", you are replacing. That is not formatting. Are the templates existing already? Are they real templates, or are they documents? If they are templates (real ones), then do you need to run through abunch of them replacing the pcx with ...whatever? You can do that with VBA, and could, depending on exactly what you have happening, do some resizing using the pcx as InlineShapes.

Hard to say until you state exactly what you have happening. But again, this does not seem to be a label issue.