Harry - in answer to your question - I was getting absolutely nothing, but see below....
....OK - latest update everyone.
I now have the picture in my BD file - just playing around with this in frustration and noticed that both the fields below the 'Keep Ratio' check box were blank. If I put numbers (any numbers) in there, my picture then appears in the file - and can be tweaked to the right size by adjusting those numbers. Is this something I should have known or is it a bit of a glitch?
Having got it in there though it's still a bit weird, i.e. I can't delete the picture (not that I want to, but I'm a software tester by profession and just like to try these things out!), or move the picture, and it doesn't appear in the book when I make it a .lrf file and move it to my Reader. I'm putting this down to the fact that I messed about with this so much I've done something daft somewhere. I'll try a 'fresh' file soon and see what happens.
BTW - as a new member, I'd just like to thank all of you who have given some of your valuable time to help me out with this - THANKS