Do you have InDesign included with Creative Suite, Carol? If you do, I'd be using that and ignoring Office. Much easier to do proper layout in a real DTP program than trying to get Word to leave images where you put them... If there's anything specific you're not sure how to do, try having a look for tutorials - there tend to be loads of them.
For anyone else: there's an open source DTP prgram called Scribus that I rather like. It's more complicated than Word, but if you're used to using Photoshop, for example, you should be fairly at home and there's loads of online documentation. You create text frames to put text in, image frames to put images in and you have layers and master pages. There are Mac and PC versions. You get plenty of options for creating pdfs for printing too.
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