Creating letterhead implies that you intend to send letters, so the first
suggestion is to locate your Caps Lock key & turn it *off*. Text in all caps
is extremely difficult for the reader and in the newsgroups it is
particularly frowned upon as the equivalent of shouting.
Your graphic can be handled in a number of ways, but would be best placed in
the Header/Footer layer of the document. The document should be saved as a
Template file so you will be able to base your new letters on it. See Word
Help on templates if you aren't familiar with them. Also, especially if you
expect your letters to be more than one page, you might want to check out
Suzanne Barnhill's excellent advice at:
http://word.mvps.org/FAQs/Customization/CreateATemplatePart1.htm
HTH |:>)