I installed the CR 2008 on a another computer that has twice the memory of mine (2 GIG) and a large mostly unused hard drive and had the same results. Interestingly, if I use CR 8.5, I have the same problem, but with different pictures, so the pictures themselves are not the problem. But everytime I open the report in either CR 2008 or CR 8.5, it is the same pictures with a problem.
Any further insight you can give me would be most welcome. I am installing the latest service pack for CR 2008 now.