Object Size and Position values not being retained

Hi,
       I'm trying to set the size and position of a picture object in a report. This logo, should appear on the top right corner of the report.
The margins of the report are Left - .79 in, Right - 0.79 in, Top - 0.79 in and Bottom - 0.39 in.
The size of the picture object should be 1.574 x 0.79 inches.
I have ensured that File -> Page Setup -> dimensions are in INCHES.
I right click the logo and select 'Size and Position'.
I set 'Y' (distance between top of object and top margin) = 0. This is to perfectly align the object with the top margin.
Now, i set the height of the object = 0.79 inches. Ok the dialog and close.
The strange thing happening is, when i re-open the size and position dialog, i see that the values i set are not being retained.
0.79 becomes 0.810
and
0 become -0.010.
What am i doing wrong here? How can i make sure the values i specify in the size and position dialog are  retained.
Thanks.

Ensure File | Options | Layout tab has the following UNMARKED!!!!
Design View
  Guidelines
  Grid
Preview
  Guidelines
  Grid
Ensure that "Snap to Grid" is turned off.
Make your grid size larger (.5 inches for example)
What is occurring (I suspect) is that your objects are snapping to the grid - thus changing the position and possibly size due to the Snap to Grid being turned on.

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