You don't write which version of Word it is, so I can't tell the exact location to look at. However, from long time ago the Tools>Options have an option to show picture in Page Layout, or to show just the box. A long time ago, computers were much slower than nowadays, and this option made a lot of sense.
Of course, only displaying the box doesn't mean that the content isn't there. It will be printed and it will be visible in Print Preview.
So check the Print Preview, and check the settings of the display options. Also the format of the picture might make a difference. A simple bitmap (bmp-file, as made with Paint) should surely work.
Post again with your findings, if needed. The more you tell, the more likely it is a solution will be found.
I have a Dell 2100 Deminsion with Windows ME operating system. When I try to insert a picture in my word document, I get the square box, but no image. My hard drive crashed and since it has been replaced I can't insert pictures in my documents. Please advise.