To Insert Picture, Clip Art, Smart Art.

Word 2007 allows you to Insert To Insert Picture, Clip Art, Shapes, Smart Art:

Insert To Insert Picture:
1.  Place your cursor in the document where you want to insert the picture
2.. Click on the Insert Tab on the Ribbon
3.. Click on the Picture from the Illustrations Group
4.. In Insert Picture, Select  your picture

5. Click on the Insert Button

Insert to the Clip Art –

1.  Place your cursor in the document where you want to insert the picture
2.  Click on the Insert Tab on the Ribbon
3.  Click the Clip Art from the Illustration Group
4.  The dialog box will open on the right side of the document.
5.  In Search for you can search Clip Art
6.  Click on the Go Button

To Insert Smart Art:

1.  Place your cursor in the document where you want the illustration/picture
2.  Click the Insert Tab on the Ribbon
3.  Select  the SmartArt button
4.  Choose a SmartArt  Graphics do you want on your document

5.  Click on the OK Button

6.  Type your text in the type your text here box.

Or 

7.  Click on the graphics to insert text or  type the text .