There are two ways in which pictures can be stored in the document:
Embedded pictures are saved as part of your document file. This means that your complete document is just one file, which makes it much easier to move from computer to computer, and you don't have to worry about losing picture files. Embedded pictures can easily be transferred between platforms.
Referenced pictures are not saved as part of your document file; instead, the file notes where Fireworkz should look for the picture next time you open the file. This method makes your document file smaller, but you will need to keep the picture file in the same place, and also to remember to give a copy of the picture file to anyone you give the document file to. It is much harder to transfer referenced pictures between platforms.
The default setting is that all pictures are embedded. However, you can change this in the Choices dialogue box by switching the Embed pictures option off.
If you reference a picture, you can still embed it in your document by selecting it and then choosing Embed from the Pictures menu.
To turn an embedded picture into a referenced picture:
Select the picture
Choose Save from the Pictures menu and save the picture outside the document.
Delete the picture from the document.
Switch off the Embed pictures option in the Choices dialogue box.
Drop the saved picture's file icon back on the document. It will be referenced in the document.
If, when you try to open a document containing a referenced picture, Fireworkz cannot find the picture, you will see an error message.