One thing I don't like about Office 2003 is that they did away with Microsoft Photo Editor (which produced .jpg s) and came up with Microsoft Office Picture Manager, which produces .bmps. Which are an utter pain to send on-line due to file size and have to be 'exported' into .jpg.
I must be missing something. I am running Ofice 2003, and when I want to edit a picture, eg a jpg file, right click brings up the option of open with ...Microsoft Office Picture Manager, and that allows all the editing/resizing/cropping that I need for simple stuff. For instance, to to produce a "cut down" version of a multi megapixel photo suitable for emailing only takes a couple of clicks, and it saves jpg directly, don't need to export.