When I make columns in Word 2007, the images that I have in the text get cutoff.
How can I resize them to fit the paper when I have images in-line with text?
I don't believe there is an (inherent) way to do what you are asking.
You need to make the columns first and then insert your picture, at which point they will be scaled to fit automatically.
Otherwise, you have to adjust the pictures manually (maybe a macro?) after you change the number of columns.