When trying to print a chart in excel 2003 with a picture on it, either a jpg
or tif, using the print selected chart option, the picture becomes stretched
and distorted. Is there a way to avoid this? Are there better picture file
formats for Office 2003, as most of my existing pictures are not being
displayed and/or printed correctly.

They look fine on the excel sheet in normal view but not in the print
preview or when it is printed.