"Humph!" I said scratching my head. I saved them as .jpgs, high enough quality to be printed on their own office printer. What could possibly be the problem.
I did a little research and this is what I found:
Word doesn't like .jpgs saved from a cmyk photo documents (like photoshop)
So I went back into my photoshop image, changed the image mode to rgb, resaved as a .jpg (and unchecked the "embed color profile". I then reinserted the images into the word document and VOILA it looked and saved just fine.
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