When saving a RTF file in Microsoft Word, Word embeds the same picture twice - first in its original format, then as a Windows Meta files (WMF). This strange behavior increases the document size highly.
By deselecting this option, you can instruct Word to embed the original picture only. When you save a Microsoft Word document that contains an EMF, PNG, GIF, or JPEG graphic as a different file format (for example, Word 6.0/95 (*.doc) or Rich Text Format (*.rtf)), the file size of the document may dramatically increase.
For example, a Microsoft Word 2003 document that contains a JPEG graphic that is saved as a Word 2003 document may have a file size of 45,568 bytes (44.5KB). However, when you save this file as Word 6.0/95 (*.doc) or as Rich Text Format (*.rtf), the file size may grow to 1,289,728 bytes (1.22MB).
This functionality is by design in Microsoft Word. If an EMF, a PNG, a GIF, or a JPEG graphic is inserted into a Word document, two copies of the graphics are saved in the document. Graphics are saved in the applicable EMF, PNG, GIF, or JPEG formats and are also converted to WMF (Windows Meta file).
For this, go to Start > Run menu, enter “regedit” and navigate to the registry path listed below. If the subkeys “\11.0\Word\Options” are not present, create it as explained below. Then, create a string value name “ExportPictureWithMetafile”, if this value does not exist. Now, right-click it and modify the data value with “1” to enable the setting.
Click “OK” and close the registry editor.
Logoff or restart your system.