Why do my numbered headings break when I apply a watermark?

Posted by gef05 on Super User See other posts from Super User or by gef05
Published on 2012-10-04T03:28:35Z Indexed on 2012/10/04 3:40 UTC
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I have an MS Word 2010 document. I am editing it in compatibility mode. I have heading 1s as a numbered list.

When I apply a watermark to the document the headings break. The number and background shading remain correct, but the text "collapses" - so the word "Introduction" appears one letter wide with all letters drawn one on top of the other (you can open Font properties for the headings and see the entire word in the preview; font spacing shows as normal).

Why does this happen?

Windows 7, SP1. Opening doc over network from Sharepoint.

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