Strange filepaths appearing in my PDFs...

Situation is as follows:

I created a Word 2007 document (docx) and in that document I used watermarks
that I had stored as Building Blocks. The images in these watermarks were on
my local C drive, for exmple c:\Robin\Images\Watermark1.jpg and were embedded
and linked. Looking at the Links dialog in the document all the links appear
as expected, that is pointing to C:\Robin\Images....

I then copied the document and images to another drive on a different
network, call it K:\LinkedImages. Looking at the Links dialog it still
pointed to C:\Robin\Images which I expected, but I corrected these so they
all refer to K. All looks good and if I replace an image in K:\LinkedImafges
and reapply the watermark (via the Building Block) the document shows the new
image just as I expected.

From within Word 2007 Save As PDF or use the Acrobat ribbon (I'm using Adobe
Acrobat 9). The PDF is created and the document and its images appear as
expected. But when I hover the mouse cursor over the watermark image it
displays the image's file name, but it displays pointing to C like
C:\Robin\Images\Watermark1.jpg ... and not only that even when only using
Adobe Reader it marks the Watermark object as a blue box ... why? Why isn't
it referring to K when the Links dialog says it is on K? Even better, how can
I get these filepaths and names to stop displaying on hover?

Anyone have a clue to help?

thanks
Robin