Microsoft Word cut and paste stopped working

I have Microsoft Office Home & Student 2007. I'm using it in Vista. It has
worked perfectly until I did a recommended update last week.

Now.. when I attempt to cut any picture from the Internet and try to paste
it into Word, it says "preview not available". You cannot see the picture
that has presumably been pasted into the document. I have tried to
"uninstall" this update, but you can only uninstall the whole Word software.
Does anyone know of a setting I can change in Word that will allow me to cut
and paste directly on the document?

HELP!
Sarah