Works for me in Excel 2002, and the picture that I tested with would have
horizontal and vertical sides and is adjusted to exactly bump into and
lock on each of the four sides to a a cell boundary. Strictly all manually,
no macros. No merged cells, sheet is not protected

My test picture was created from a copy of a small range of cells with
distinctive pattern and font color and
then created using Shift+(Edit, Paste Picture),

Format Picture
Size: all checkable items are unchecked
Properties: Move and size with cells

Try it in a new worksheet, post what version of Excel you are using,
I can only test with Excel 2002 (although I keep thinking it is Excel 2000).
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HTH,
David McRitchie, Microsoft MVP - Excel
My Excel Pages: http://www.mvps.org/dmcritchie/excel/excel.htm

"starguy" wrote...
I have done this rightly. only the thing is that it does not expand when
I increase col size. all other things are okay (i-e decrease in col size
and increase and decrease in row size effect picture size)