It would appear that the image itself probably is corrupted. The only thing I've found that resembles (but only vaguely) what's described is an image corruption resulting from an error in "color indexing" during creation of the image file.

Since the image does print okay but the thing looks different in Word, it's probably most likely that it's a metafile, with the "actual" image and a preview image. One of them is good enough to work (print?) but the other hardware is using the other one (intermittently?), which is corrupted.

Corruption of the kind seen might indicate that the image was originally saved in an "indexed color" format like a .gif from which someone, possibly the one(s) who posted it where you found it, made a sloppy conversion to the .jpg that you found.

In the absence of an editing program that will let you change formats to try to drop out the preview, if you can get a "good enough" print, it could perhaps be scanned to make a new "original" .jpg. (?)

There's also the possibility, if it's not really a "unique" image, that it's been posted at more than one web site. A Google Image Search for the filename it had when you found it, and/or with appropriate descriptive terms, might (slim chance, but better than none sometimes) find the same picture at another place.

Just as a maintenance exercise, if you haven't done it recently, I would suggest running Disk Cleanup (Start|Programs|Accessories|System Tools|Disk Cleanup) on your main (Windows) hard drive. Temp files and other clutter items are supposed to be cleared when you reboot, but sometimes there are a few left, and Disk Cleanup usually will get rid of any the "leakage" - especially any that might be eating into your Temp spaces/folders.

John