Word 2010 lets you crop an image to a shape. What does this mean? Think of baking cookies. Once you make the dough and roll it out, you can use cookie cutters to cut the dough into shapes. The crop tool lets you do the same thing with images. For example, once you insert an image, you can crop the image into a star shape.
So how do you crop an image to a specific shape in Word 2010? Select the image that you want to crop to shape. Click the bottom half of the crop tool button on the Picture Tools tab. Hover your mouse over the Crop to shape option to see the gallery of different shapes (or cookie cutters) that you can use. Select the shape you want to use and press Enter. Your image is automatically cropped to the shape you selected.