This can be reproduced with the provided .docx. In Word the image floats in the empty space below the text but the RichTextBox has it inline and overlapping text.
Removing the rectangle from around the image in the source document has no affect.
Hi Matt,
The image is specified as floating via a VML shape, which is currently not supported. I logged a new public item for this request: RichTextBox: Support import of floating images specified in VML shapes.
As a possible workaround, you can try to upgrade the documents to a newer DOCX compatibility setting (by re-saving them with MS Word for example), where such shapes are not allowed and are replaced with more modern constructs which the import of RadRichTextBox supports.
Regards,
Boby
Progress Telerik