Excel File & Hyperlinking images

Dear Sirs,

Glad to have access to this enriched and invaluable Exceltip Forum.

I need your kind advise on the following :

Attached is my excel database file, which is all about details of employees, to be used for printing Photo ID badges through a software that pick up relevant data field from the database, including Photograph.

My problem :

How should I hyperlink the last datafield that of Photo ?

1. Should I simply hyperlink the image by way of giving path OR

2. Should I actually paste the image directly into that Cell

3. When I attach the image from my USB drive (only) which I can use for printing through desktop or laptop at a remote location, the error message pops up "This operation has been cancelled due to restrictions on this Computer. Please contact your system administrator." There is no problem when you hyperlink image on the desktop ( in which case both database file and images are stored in the same folder on the desktop itself)

Please guide me on the best way to hyperlink images in excel files

Thanks & best regards : Jack