Many thanks for the reply and suggestions! I've managed to track down the problem to the 'Snap objects to other objects' option, which should be unchecked to prevent the above behaviour. Which is strange, as it sounds so useful.
I've just 'up'graded to MS Office 2007 and I'm having a nightmare with the drawing tools. They worked just fine in my previous version of Word. I have the snap settings enabled. Shapes will snap to the grid, but with a little bit of give either way, so they don't necessarily sit neatly on the...
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