It seems to just come in as default when linked.
You format the pic for desired size, but it seems to revert when you
change the source or update it.
Maybe use a quick VBA routine to update and resize the pics?
here's my field contents:
{ INCLUDEPICTURE "C:\\Documents and Settings\\jm065225\\My
Documents\\My Pictures\\1.bmp" \* MERGEFORMAT \d }

Jay