Word 2002 has no edit Piture

I have installed Office XP on a Windows XP machine. I have installed it by choosing the Run All from my drive option and then uninstalled and individually selected EVERY option in Office XP individually. When I attempt to edit a picture in a document that I am working on, the “edit Picture” option in the pop-up window is grayed out. I am unable to find where to find where I need go to turn on the option or install an editor to allow editing of pictures.
Is this now a “New Feature” in Office XP that you have to purchase separately? I am using the corparate copy of Office XP Pro with all features including Access to install with.