1. Open Picture Definition window in Report Writer and type in new name of image
2. Open image in Paint application
3. Use Select to select entire border around the image
4. Right click inside the selected area and select Copy
5. Return to Picture Definition. Tab from the Picture Name field to the Picture field (border will be selected). Click CTRL+V to paste the image.
Ahhh, the vagaries of Report Writer . . .
Thanks David!

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