If you make the object into a block first you can change the properties of that block, including x y & z scales. After you are done scaling the object you can explode the block.
I haven't tried this in 2011 and is a bit of a work around, but it works for any object including text.
Rocky...
We have worked around this problem using two different methods. The first method was to create a "pic" folder in each project and keep all of that project's pictures there. This just helped us locate the pictures more easily and reattach them if the folder was moved, or drive letter reassigned...
