Hi Tebett,
I looked at Word 2007 and I don't find any default switch setting, but I'm not near a 2010 machine today. Something you might try is after doing the next one, save the file, close and quit Word completely and then reopen it. I'm wondering if the setting
is not being applied to your user preference until you close Word.
If you're having to do this on a whole bunch of images in document you might consider taking a look at a bundle of add-in apps called the
zAPPs-apps Collection. There's about 14 different apps in it and one does image resizing in Word documents. With full disclosure, it's sold by my company.
You can try it for free and who knows, maybe you can get the whole project done just within the free trial period.
Hope this helps
Kind Regards, Rich ... http://greatcirclelearning.com