Pictures do not show up in Outline Mode using docx 2007

Can anyone see pictures in Outline Mode using Word 2007, and the docx file format? I see white space. The height and width of the white space are correct, but there is no picture visible.

I searched and found many articles about enabling options, but they did not work:

- Office | Word Options | Display
- "Print drawings created in Word": already checked
- "Print background colors and images": already checked
- Office | Word Options | Advanced | Show document content
- "Show background colors and images in Print Layout view" already checked
- "Show picture placeholders" already unchecked
- "Show drawings and text boxes on screen" already checked

The picture shows up fine in Print Layout view. It is set to have Picture Tools | Format | Arrange | Text Wrapping: "In Line with Text".

Even with above, there are no pictures showing up in ".docx" Outline mode in Word 2007.

But pictures do show up in Outline mode when I use the older 2003 ".doc" format in Word 2007.

Is this a known issue?
Is there a setting I can change or some other workaround?

Thanks,
Warner