Well there is another way...

Use the old, hidden and almost forgotten "Camera button" !

Here is how to add the Camera Icon Button:
Menu:Tools, Customize, Commands(tab)
Click on Categories: Tools.
70% down there is a small Camera button.
Drag and drop to your icon menu bar.

Next here is an Example how to use your new Camera button to create a
Dynamic Picture link. I hope you can follow:

1. Insert a red Circle (autoshape) and place it over cell D1.
2. Insert a green Circle and place it over cell E1.
2. Mark the cell where your red circle is located (D1)
3. Now Click the camera and paste where you want your 'picture' to be placed.
4. Click on your picture. The formula bar will show the cell reference
=$D$1. Delete that reference and write instead =Circles
6. Next go to the Menu: Insert, Name... Define and insert a name called
Circles and use the formula =IF(A1=1,D1,E1). This will focus the picture on
either the Red Circle or the Green Circle.
7. Try to change the value in A1 and you will see that you picture will show
a red or a green circle.

This is the principle.
Have fun

Ola Sandstrom