Help!

I know most people who read my blog do not blog themselves...but seriously people, I need some help. I inserted this pretty new banner and wanted a picture in the little blue frame. So...after I downloaded the pretty new banner, I couldn't do anything with it in iPhoto, so I copied it to Word. I went to "format">"fill">"picture">"choose a picture"...which sounds perfect, right? Nooooo....it has to not fit in the picture frame. So for the last 3 hours I've tried cropping the photo, resizing and resizing and resizing the photo, setting it to tile mode....nothing is working. I'd also like to put our blog title onto it, and that's a whole other story....let's just say textboxes don't work and you can't just "add text" to the photo. There HAS to be an easier way! 

UGH!!! Can you feel my frustration through the computer screen?

So unless you people help me figure this out, you'll just be looking at my teeth and one side of Dustin's face. Deal with THAT!