I'm assuming this is to make the Name Decoations with the pictures inside each letter? If I can remember the steps correctly (as I can no longer open my Word program, trial over), Once you have your letters on the page, put your cursor on the letter, right click, then select from the drop down menu, "Format Word Art" or "Format" (not sure exactly what it says other than format.
A window will pop up, then just look around on that till you find something that indicates "Fill with photo or picture". It's pretty easy to figure out from there. The only thing I haven't figured out is how to move the picture around so the right parts show through the letters. If anyone else here knows the "HOW TO" for that, can you post it here?