I had exactly the same problem with WP 9 when I converted to a Windows XP machine. It drove me crazy for months, but then I found Barry MacDonnell's tip site and the following solution.
Why the heck graphics and indexing are connected is beyond me, but this solution works.
I prefer to have indexing OFF on my machine and I found that this solution works even if one turns off the Indexing Service itself AFTER allowing it to index a disk.
Regards,
Jeremy
--- solution ---
Problems inserting (non-WPG) graphic images into WordPerfect on a Windows 2000 or Windows XP system?
From Charles Rossiter, Corel C_Tech:
In both Win2000 and WinXP, to be able to insert non-wpg graphics, you have to enable indexing service on your NTFS partition, although you can disable it overall.
Double-click My Computer to get a list of partitions. Right-click on the partition with the graphics. Select Properties. Check on the option "Allow index service to index this disk ...".
In Win2000 to disable indexing service overall, you can do Windows Start, Search, Files or Folders, if needed click on Search Options to open that sub-dialog. If Indexing Service is enabled, you can set it to disabled, which should over-ride the option for the particular partition which has to be enabled.
In WinXP to disable indexing service overall, you can do Windows Start, Search, Files or Folders, click Change Preferences. Now click Without Indexing Service and select the option "No, do not enable indexing service", which should over-ride the option for the particular partition which has to be enabled.