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Thank you, Pete.

Yes, I should have exported all the images and replaced them. I failed to output to PDF to test it. Only the single image I replaced was OK. I fixed the XAR file at my end (and...

There is something funky about the jpeg encoding or the transparency blending space when it was clipped into the oval on that JPG. If you want, here's a copy of the XAR file which might suffice for...