I also use Word 2007 for publication of public domain stuff, not of my authorship, some of which includes graphics, and it works fine, IF you know how to use its features. Therein lies the problem, of course, in that many of its more powerful and specialized features are hidden behind layers of stupidly unintuitive and unobvious multi-level menu choices and/or multi-finger keystrokes, none of which you'll find much help with from Microsoft's astoundingly arcane "Help" system. MS-Word is really a very powerful tool, and worthy of spending time and frustration in learning in depth. Much the same can be said for MS-Excel.
And, in case you don't know about this, screen-capture utility (Shift-Print Screen on the keyboard) is immensely useful for graphic work.
caw