Put the image in a Word Doc. With it highlighted in word, Ctrl+C. Then activate ArcMap and Ctrl+V. You're basically Copy/Paste-ing it into the ArcMap layout. Stupidly simple, but it worked (for me at least).
I don't know how you found this out or why this works, but it did the trick, cheers Bob
This is ridiculously simple, and I don't know why it works, but Thank You!!!