There is a healthy range of free clip art available from Microsoft and it includes some photos including content from iStockPhoto.com. However, the process of getting them into your document any other way than by choosing Insert > Clip Art is not always obvious.
Here’s how to add a clip art image to a circle shape:
Choose Insert > Shape and select the Oval. Hold Shift as you draw to create a circle on the screen. If you choose Drawing Tools > Format > Shape Fill you get the option of applying a picture to the shape but not clip art.
Instead, right click the shape and choose Format Shape to get access to the new to Word 2010 – Format Shape dialog. Choose Fill > Picture or Texture Fill and click the Clip Art button.
Browse or search for an image. You could also have placed a Clip Art image into your document using Insert > Clip Art and then selected it and cut it to the Clipboard. Here in this dialog you can choose Clipboard to add the image from the clipboard – in short you have more options here for using image than you have using the Shape Fill list.
If the image is skewed out of shape – and it will be if it is a portrait or landscape image inside a circle which is pretty much a square with the corners cut off – you can adjust it.
Select Crop and, for a landscape orientation image inside a circle, increase the Picture Position Width value. For a portrait orientation image inside a circle, increase the Picture Position: Height value.
Then adjust the Offset X or Offset Y values, if desired, to control which portion of the image shows up inside the circle.