Try this (from the wiki):
5. Finally, there were two command line fixes to get the graphics to insert correctly into BD.
5a. The first fix involves unhooking and rehooking comct232.ocx
Run command line as administrator - Start -> All Programs -> Accessories then Right Click on Command Prompt and Run as Administrator.
You will probably be right in c:\Windows\system32
...if not then type:
(Now to unhook and rehook comct232.ocx type)
regsvr32 /u comct232.ocx
5b. The second fix registers GflAx.dll from your BookDesigner subdirectory
use CD.. and/or CD \ and/or CD <DirectoryName> to navigate to your BookDesigner subdirectory
CD Book Designer
then just type the following (still running CMD as Administrator)