I've got a weird problem that just started happening last week on one
of my PCs (running XP pro).

If I copy an image from IE8, and paste it into word 2007, the first one works fine, but then when I paste subsequent images, I get a copy of the first one.

When I paste the second time (or any subsequent copy/pastes after the
first), it knows the size of whatever item I copied to the clipboard,
but it pastes the first image distorted into that size!

Here's just one example: say I copied an article from a blog that
contains images and paste it into Word. All the images that appear
will be the same one, but they will be different shapes and sizes. The
texts pastes just fine.

If I close the program and reopen it, it starts over. I get another
chance to paste an image, but the subsequent ones are the same.

Same goes between programs. E.g., even if it's pasting the same image
in PowerPoint, if I open Word and paste it, I get the correct image.
But only the first time, then it repeats that one. It's just bizaare.

And it's only between IE8 and MS Office 2007. I've tried copy/paste in
other programs and it works just fine.

Any ideas? Please help, it's driving me nuts and it's a time-consuming

Tried all the obvious reinstalling, fully up to date etc...