When you click on your graphic have a look in the inspector palette at the assigned dimensions. The middle row should show the width and height of the graphic. Click on the symbol before the box height and then preview your page to see if this has fixed it. If not try clicking the box again. I seem to remember having to do something similar when I upgraded but I think I was advised to go via version 6 to make the transition a little less painful.
All the best
Gordon
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