As you would expect from Microsoft, the way to do this is illogical and counterintuitive. It is there though!
1. Press control-c to copy what you want
2. Click paste to get the pull down menu
3. Put the mouse above "as picture"
4. Click "copy as picture" !!! (why this is under the paste menu only Bill Gates can know!);
5: you then get the usual excel 2003 choices