Linked image question

I create a monthly newsletter using InDesign CS3 (5.0.4) on a Dell Inspiron 6000 with a 1.5 GHz Pentium M processor, 2 GB of RAM and Win XP/SP3.
I collect information from various sources, some of which are Micorsoft Word documents with graphics, and I rarely have access to the separate graphic files.  I have MS Word 2002 SP3.
I can Copy the graphics from Word into InDesign (when I right click on these images in Word, I do not have the Save Image As option).  However, when I do so, the image is not linked, it is embedded, whatever the size of the image (and despite the Help file statement regarding images under/over 48 kB).
The problem I encounter is when I try to export (Cross Media Export/XHTML Dreamweaver) a specific newsletter article (Export/Selection), including those embedded graphics (I also create an web version of the newsletter), I receive a message that "...only linked images are exported."  I want to export the article including the graphics.
After searching through the InDesign Help file, I found info that says to choose Window/Automation/Data Merge/Content Placement Options/Link Images to link and not embed images.  This I have done.
After searching this forum, I found a posting that says Copy/Paste does not preserve links(from any application except another ID file).
In the ID Help file is a statement that the Links panel can be used to change the status (linked or embedded) of a graphic.  However, when I open the Links panel after pasting an image into a frame, the only choices are Copy Links and Sort.  I concluded that the limited choices are a result of the lack of a separate graphics file.  Correct?
I can Paste the image into InDesign, Export it as a JPG (to create a separate graphics file), delete the Pasted image from the ID file, and then Place the JPG file into the ID file.  That creates a linked image, which is included with the selected exported newsletter article.
Is there a better (simpler) way to accomplish this task?

There are a number of ways to get graphics out of Word/Powerpoint/Excel, but copy/paste into Indesign is the worst, mainly because you get only screen resolution.
1) Place the Word file. You'll get embedded graphics again (most of them at least), but there's nothing to stop you from unembedding them (through the Links panel), and you'll get full resolution images, not screen previews.
2) Print the Word file to PDF and then Place pages of the PDF.
3) Save the Word file to a web page (as mentioned by Jay and Jeffrey in this thread).
4) Open the Word file in OpenOffice, save in OO's native format, change the extension to .zip, and unzip the file (where you'll find your graphics in separate files).
5) My personal favorite: Copy out of Word and paste into Illustrator or Photoshop. Michael mentioned Photoshop too, but it's important to use the right program depending on the content. If you have a bitmap (a photo, scan, or screen capture), paste it into Photoshop. If you have a vector graphic (a drawing consisting of lines and shapes, like a graph) or a combination of vector and bitmap, paste it into Illustrator. The reason this is my favorite is because it gives me a chance to fix the graphic. If nothing else, everything from Word comes in as RGB, but I also usually need to change the typeface and size the graphic appropriately.
Ken Benson

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