Daij, can you check the file extension of the actual objects in your image folder? It's just sounding to me a bit as if a kodak image software has encouraged you to use it and may have already put these images into some kind of album holder, hence you are seeing a border around them. This makes it harder for you to work with your images.
If they are jpg / jpeg. then I think what has happened is that the scanning has left white space around each picture, that looks like 'paper' but as far as stupid computers are concerned it is all part of one image. When you scroll through your folder the image that opens up is the image as far as the computer knows, but what you are seeing is lots of white border etc.
So what you need to do is crop each image first of all so that you do not have any white space. You can do this in paint. Open the image in paint, select the crop tool, crop and save.
If you have scanned several images on each scan (I do this a lot) then do the cropping process but choose 'save as' and give each image a separate name.
Inserting images into word is unnecessary and just causes more problems further down the road.
Hope this helps.