When you drag a .txt file into an Office 2003 or Office XP file, or if you press Insert / Object / Create from File, the Office program displays a blank picture with caption for the OLE object created.
NOTE: This behavior also occurs in Microsoft WordPad.
This behavior occurs because the function used can only handle 16-bit color and some file types use 32-bit color in Windows XP and Windows Server 2003.
I would live with this behavior, but if you must, you can change your color quality settings to 16-bit color:
1. Right-click the desktop and press Properties.
2. Select the Settings tab.
3. Select Medium (16 bit) in the Color quality list.
4. Press Apply and OK.
5. Insert the object again.