Word 2002 Picture Placement problem

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I am working on a large document consisting of several files linked through a master document. The document has numerous pictures and text boxes. Most pictures need to be centered on the page and locked to a paragraph. With past versions I have placed the picture then created a text box with the picture label then grouped the picture and text box together and formatted the object to place. Formatting is not available once the two are grouped together. The object jumps to the top of the page and cannot be moved. It also floats over the text and cannot be changed. I place a picture in a document and lock to a paragraph. I then expand the master document. The picture stays locked to the paragraph even though the picture is hanging off the bottom of the page. The paragraph will not roll to the next page unless a page break is placed before the paragraph whice is not acceptable. This was so easy to do in earlier versions. Can anyone help?