Any suggestions please

I'm placing an image file in a word doc (w2k2) which I want to use as a watermark, and as a conventional image in the header.

When I use an eps, the image prints with a border, although the image itself does not contain one. I've also checked that Word isn't adding one. It doesn't show in print preview either.

I then tested a doc by placing an eps, tif, jpg & bmp file in a word file, and only the eps printed with a border. The three derivative files were each created from the original eps, opening it as an eps each time before converting it.

The easy solution would be to use the jpg, but the greater quality of the eps makes it desirable to use it if I can.

Is there any way to remove this border.