Click on 'Insert,' again at the top of MS Word. When the menu appears, let your mouse arrow hover over 'Picture.' Here you'll have several options. You can create your letterhead on the fly using some of those options. However, for our purposes we'll opt to choose 'From File,' since we already have a ready graphic. Click on the option, 'From File,' and a dialogue box opens. Locate your graphic and then click on it and then click the 'Insert' button. Your graphic will then appear inside the dotted box.
Creating Envelopes _ Your letter will not be complete unless you have an envelope also formatted appropriately. What's good about this function is that you can either customize your own envelope or allow Word to come up with a matching envelope to the letter you have written using the application. What it does is it automatically copies the address and uses it to create the envelope. That helps you do away with manual typing.