The following example cropping a picture in MS Word 2007, for other Microsoft Office (office 2003 and 2010 is not too different)
Do inserting picture as usual, via the Insert menu -> Picture
After the image appears, click on the image, it will display the Picture Tools Format Menu
Select the Crop icon (circled in red in the example)
click on image to enlarge
To make cropping, set / slide the mouse cursor at the top, bottom, or side of the picture/image to make the area as expected.
May be useful.
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