I can work with Image captions, they are added fine in the doc.
But when I add new ones in the middle, the captions are not updated and I end up having two or more captions having the same number.
How do I update the references?
I believe what's happening is that your new captions are automatically numbered, but the references to them are not automatically updated. There are a couple of ways to handle this. The first is easiest, but you have to remember to do it.
If you want the fields to be correct before printing but don't care about it until then there's an option to update the fields before printing.
Selecting Print Preview or Print will update all the references in the document.
In MS Word 2007, at least the one I'm using, they're updated automatically. Upon inserting the third picture in the middle of "Picture 1" and "Picture 2", the "Picture 2" becomes "Picture 3" and the inserted one takes the caption of "Picture 2".
However, I may be misunderstanding the question. Is that what you're asking ?