So pleased to find this post. I was banging my head against the wall with my IT Director as to why what worked last week didn't work today. It's nice to know this is NOT an isolated problem.
Because we are halfway through our project (ABC books with clipart) we will finish with the photos or go to a clipart site online. I'm not going to start using Google Images or Bing with 2nd and 3rd graders yet. I told them they couldn't use photos because of file size and printing, but that's what we'll probably do. It seems the server hosting clipart was disconnected. Maybe they'll hear from some schools and plug it back in. Many schools survive on old technology and old software runs well on old technology. I'm at a private school that doesn't have funding for new tech. Or support hours to update or install newer tech. My school is running Office 2003. I will update to 2010, but I guess it won't improve the clipart issue.
The toughest problem with this is no information on Microsoft website. Just "not supported". I did leave some comments for them. Hope it is read.
If I sound frustrated it's because I am, and no you are not alone with the problem.