You could also parse the XML returned by Document.Content.XML to extract all the images. Then update each source with the path of the external image and write back the XML with Document.Content.InsertXML.

Writing the XML back automatically adds a linked field which seem to be one of your requirement. It's faster that working with the clipboard and it doesn't alter the style of the shape. Though, you might need to tweak the code to handle specific cases.

Private Declare PtrSafe Function CryptStringToBinaryW Lib "Crypt32" (ByVal pszString As LongPtr, ByVal cchString As Long, ByVal dwFlags As Long, ByRef pbBinary As Byte, ByRef cbBinary As Long, ByVal pdwSkip As LongPtr, ByVal pdwFlags As LongPtr) As Boolean

Public Sub Example()
  SaveAslinkedImages ActiveDocument, "c:\temp\myfile-no-img.docx"
End Sub

Public Sub SaveAslinkedImages(Doc As Document, fname As String)
  Dim objXml As Object, binData As Object, binName$, nodes, node
  Dim imgPath$, docDir$, imgDir$, i&, data() As Byte

  Set objXml = VBA.CreateObject("Msxml2.DOMDocument.6.0")
  objXml.Async = False
  objXml.validateOnparse = False

  ' parse xml document '
  objXml.LoadXML Doc.Content.XML

  ' add namespaces for SelectNodes '
  objXml.setProperty "SelectionNamespaces", _
    objXml.DocumentElement.getAttributeNode("xmlns:w").XML & " " & _
    objXml.DocumentElement.getAttributeNode("xmlns:v").XML

  ' create the  media folder '
  docDir = Left(fname, InStrRev(fname, "\") - 1)
  imgDir = Left(fname, InStrRev(fname, ".") - 1) & "_media"
  MakeDir imgDir

  ' iterate each image data '
  For Each binData In objXml.SelectNodes("//w:binData")
    binName = binData.getAttribute("w:name")

    ' get all the nodes referencing the image data '
    Set nodes = objXml.SelectNodes("//v:imagedata[@src='" & binName & "']")

    If nodes.Length Then ' if any '
      ' build image path '
      imgPath = imgDir & "\" & Mid(binName, InStrRev(binName, "/") + 1)

      ' save base64 data to file '
      DecodeBase64 binData.Text, data
      SaveBytesAs data, imgPath

      ' remove the data '
      binData.ParentNode.RemoveChild binData

      ' for each image '
      For Each node In nodes
        ' set id '
        node.ParentNode.setAttribute "id", node.ParentNode.getAttribute("o:spid")

        ' remove o namespace '
        node.ParentNode.Removeattribute "o:spid"
        node.Removeattribute "o:title"

        ' set external image source '
        node.setAttribute "src", imgPath
      Next
    End If
  Next

  ' write back the xml and save the document '
  Doc.Content.InsertXML objXml.XML
  Doc.SaveAs2 fname

End Sub

Public Sub SaveBytesAs(data() As Byte, path As String)
  Open path For Binary Access Write As #5
  Put #5, 1, data
  Close #5
End Sub

Public Sub MakeDir(path As String)
  If Len(Dir(path, vbDirectory)) Then Exit Sub
  MakeDir Left(path, InStrRev(path, "\") - 1)
  MkDir path
End Sub

Public Function DecodeBase64(str As String, out() As Byte) As Boolean
  Dim size As Long
  size = ((Len(str) + 3) \ 4) * 3
  ReDim out(0 To size - 1) As Byte
  DecodeBase64 = CryptStringToBinaryW(StrPtr(str), Len(str), 1, out(0), size, 0, 0)
  If size - 1 < UBound(out) Then ReDim Preserve out(0 To size - 1)
End Function

This is where your code is going astray:-

With ActiveDocument
            .Range.InsertAfter vbCr
            Set Rng = .Paragraphs.Last.Range

You are inserting a carriage return at the end of the document (which actually inserts a new blank paragraph) and then add a field in that paragraph. Obviously, you want the field somewhere else.

Meanwhile, if you wish to delete the links you should let your code do that. I haven't been able to figure out whether your code makes an attempt in that direction but presume that it extracts the picture's path from the link. So, the link should be located and deleted after giving up its path, and the field inserted in its place.

Here's my attempt. I did make an assumption that the shapes in the document would be a Inline Shape. I mocked this up on my computer with inline shapes.

Important Prerequistes

I'm using early binding of the Scripting.FileSystemObject and the Scripting.Dictionary. In order for this to function with no other changes to the code, please add a reference to the Microsoft Scripting Runtime.

How it works

The code iterates through each shape in the document chosen and saves each shape to a local folder. Once each shape is saved the shape is then deleted. From here the filename (key) and the range (value) of the InlineShape is saved into a dictionary. After this process has been done for each shape, the field with the INCLUDEPICTURE details are added by iterating through the dictionary to get the values needed.

Code

Option Explicit

Sub SOExample()
On Error GoTo Errhand:
    Application.ScreenUpdating = False

    Dim FileName        As String
    Dim doc             As Document
    Dim rng             As Range ' Used to keep track of where the shape was before being deleted
    Dim shp             As Word.InlineShape 'I think you want to iterate inline shapes which generally are pictures
    Dim i               As Long ' Counter
    Dim fso             As FileSystemObject ' used for File Operations/etc
    Dim tmpPics         As String: tmpPics = GetDesktop & "Temp Pics" 'default folder on the desktop for temp storage
    Dim picData()       As Byte ' To hold picture information
    Dim pos             As Variant
    Dim fileNumb        As Long

    'This section was untouched
    With Application.Dialogs(wdDialogFileOpen)
        If .Show = -1 Then
            .Update
            Set doc = ActiveDocument
        End If
    End With

    'Make sure we have an object to work with
    If doc Is Nothing Then Exit Sub

    'Get a reference to FSO
    Set fso = New FileSystemObject

    'Delete files or create folder where needed
    If fso.FolderExists(tmpPics) Then
        fso.DeleteFile (tmpPics & "\*"), True
    Else
        fso.CreateFolder tmpPics
    End If

    'Create a dictionary to store the file name and range
    'We need to do one pass through each image and save them, then delete the sheet
    'As we go we are going to add the filename into our dictionary as the key, and -
    'add the range of the remove image as the value. We use that range later to add the INCLUDEPICTURE portion
    Dim mydict As New Scripting.Dictionary: Set mydict = New Scripting.Dictionary

    'iterate each inlineShape...you may need to alter this as I'm unsure if this is the only type needed
    'To be extracted. Sections of code grabbed from:
    'https://stackoverflow.com/questions/6512392/how-to-save-word-shapes-to-image-using-vba
    For Each shp In doc.InlineShapes
        fileNumb = FreeFile
        i = i + 1

        'Build a temporary file name for our temp folder
        FileName = tmpPics & "\Image " & CStr(i) & ".emf"

        'Write the file as an EMF file
        Open FileName For Binary Access Write As fileNumb
        picData = shp.Range.EnhMetaFileBits
        pos = 1

        Put fileNumb, pos, picData
        Close fileNumb

        Set rng = shp.Range

        'Add the details to our dictionary for iteration later
        'I'm not adding the text here as, at least for me, adding this field adds another shape
        'On the next iteration, it was trying to apply the same steps...creating what I'm assuming is an inifinite loop
        If Not mydict.Exists(FileName) Then mydict.Add FileName, rng
        shp.Delete
        Set rng = Nothing
    Next

    Dim var As Variant

    'Go through our dictionary, and add the fields into our document
    For Each var In mydict.Keys
        doc.Fields.Add Range:=mydict(var), _
                       Text:="INCLUDEPICTURE """ & Replace(var, "\", "\\") & """ \d"
    Next


CleanExit:
    Application.ScreenUpdating = True
    Exit Sub

Errhand:
    Debug.Print Err.Number, Err.Description
    Select Case Err.Number
        'Add error handler here

    End Select

    Resume CleanExit

End Sub

'A small helper function to get a path to the desktop
Private Function GetDesktop() As String
    Dim oWSHShell As Object: Set oWSHShell = CreateObject("WScript.Shell")
    GetDesktop = oWSHShell.SpecialFolders("Desktop") & "\"
    Set oWSHShell = Nothing
End Function

By locating each image and put the link in its position this code will acheive what you want. Note that the original file will be overwritten if you save the modified document. See my comments in the code for more info. Code now works for duplicates as well

Option Explicit
Const IMAGEBASENAME = "image"
Const IMAGEEXTENSION = ".jpeg" 'Images in .zip file are all .jpg

Sub MakeDocMediaLinked()
    Dim StrOutFold As String
    Dim Obj_App As Object
    Dim Doc As Document
    Dim Rng As Range
    Dim StrDocFile As String
    Dim StrZipFile As String
    Dim StrMediaFile As String
    Dim objShape As InlineShape
    Dim imgNum As Integer
    Dim imgCount As Integer
    Dim imgName As String
    Dim imgNames As New Collection
    Dim i As Integer
    Dim doDir As Boolean

    Application.ScreenUpdating = False
    With Application.Dialogs(wdDialogFileOpen)
        If .Show = -1 Then
            .Update
            Set Doc = ActiveDocument
        End If
    End With
    If Doc Is Nothing Then Exit Sub
    With Doc
        StrDocFile = .FullName    ' ID the document to process
        StrOutFold = Split(StrDocFile, ".")(0) & "_Media"
        .Close SaveChanges:=False
    End With
    If Dir(StrOutFold, vbDirectory) = "" Then MkDir StrOutFold    ' Test for existing output folder, create it if it doesn't already exist
    '*
    '* Delete any files in the output folder. On Error Resume Next not used
    '*
    If Dir(StrOutFold & "\*.*", vbNormal) <> "" Then Kill StrOutFold & "\*.*"
    ' Create a Shell App for accessing the zip archives
    Set Obj_App = CreateObject("Shell.Application")
    ' Define the zip name
    StrZipFile = Split(StrDocFile, ".")(0) & ".zip"
    ' Create the zip file, by simply copying to a new file with a zip extension
    FileCopy StrDocFile, StrZipFile
    ' Extract the zip archive's media files to the temporary folder
    Obj_App.NameSpace(StrOutFold & "\").CopyHere Obj_App.NameSpace(StrZipFile & "\word\media\").Items
    Do While Dir(StrZipFile) <> ""     ' Delete the zip file - the loop takes care of timing issues
        Kill StrZipFile
    Loop
    StrMediaFile = Dir(StrOutFold & "\*.*", vbNormal)     ' Get the temporary folder's file listing
    Documents.Open FileName:=StrDocFile
    With ActiveDocument
        imgCount = .InlineShapes.Count
        For imgNum = 1 To imgCount
            '*
            '* Get the (next) image
            '*
            Set objShape = .InlineShapes(imgNum)
            '*
            '* Get the original full path of the image
            '*
            imgName = objShape.AlternativeText
            '*
            '* Look for possible duplicate
            '*
            '* Add the ordinal number as the item and the path as the key to avoid duplicates
            '* If we get an error here then the image is a duplicate of a previous one
            '* The ordinal number in imgNames identifies the image to use in the _Media folder
            '*
            i = imgNames.Count  'Current count
            doDir = True    ' Assume no duplicate
            On Error Resume Next
            imgNames.Add imgNum, imgName
            On Error GoTo 0    'Always reset error handling after Resume
            If i = imgNames.Count Then    'Duplicate found, build the duplicate's file name
                StrMediaFile = IMAGEBASENAME & imgNames(imgName) & IMAGEEXTENSION
                doDir = False    'Do not read a new file
            End If
            '*
            '* Get the range where we want the link to appear
            '*
            Set Rng = objShape.Range
            '*
            '* Delete the image from the document
            '*
            objShape.Delete
            '*
            '* Replace the image with a link to a saved disk image in the *_Media folder
            '*
            .Fields.Add Range:=Rng, Type:=wdFieldEmpty, PreserveFormatting:=False, _
                        Text:="INCLUDEPICTURE """ & Replace(StrOutFold & "\" & StrMediaFile, "\", "\\") & """ \d"
            If doDir Then StrMediaFile = Dir()    ' Get the next media file since we had no duplicate this time
        Next imgNum
        .Fields.Update
    End With
    Set imgNames = Nothing
    Application.ScreenUpdating = True
End Sub

One way would be to copy the image to the clipboard with Selection.Copy and to save it as a PNG from there. Then replace the image with an external link with Document.InlineShapes.AddPicture.

To handle the duplicated images, hash each image and keep track of the computed code. I would also rescale the shape before an after to keep the original resolution.

Public Sub Example()
  SaveAsExternImages ActiveDocument, "c:\temp\myfile-no-img.docx"
End Sub

Public Sub SaveAsExternImages(doc As Document, fname As String)
  Dim sh As InlineShape, rg As Range, docDir, imgDir, imgPath, imgHash
  Dim hDib, scaleW, scaleH, i As Long
  Dim imgPaths As New Collection
  Dim imgs As New Collection

  ' create the  media folder and set the relative directory '
  docDir = Left(fname, InStrRev(fname, "\") - 1)
  imgDir = Left(fname, InStrRev(fname, ".") - 1) & "_media"
  MakeDir imgDir

  ' clean clipboard '
  Call OpenClipboard: Call EmptyClipboard: Call CloseClipboard

  ' select images '
  For Each sh In doc.InlineShapes
    Select Case sh.Type
      Case wdInlineShapeLinkedPicture, wdInlineShapePicture
        imgs.Add sh
    End Select
  Next

  ' handle each image '
  For Each sh In imgs

    ' store/reset the scale '
    scaleW = sh.ScaleWidth
    scaleH = sh.ScaleHeight
    sh.ScaleWidth = 100
    sh.ScaleHeight = 100

    ' copy shape to the clipboard '
    sh.Select
    doc.Application.Selection.Copy

    ' get clipboard as DIB (device independent bitmap) '
    If OpenClipboard() Then Else Err.Raise 9, , "OpenClipboard failed"
    hDib = GetClipboardData(8)  ' 8 = CF_DIB = BITMAPINFO '
    If hDib Then Else Err.Raise 9, , "GetClipboardData failed"

    ' get image hash code from DIB (CRC32) '
    imgHash = GetDIBHashCode(hDib)

    ' save as PNG if hash not already present in the collection '
    If TryGetValue(imgPaths, imgHash, imgPath) = False Then
      i = i + 1
      imgPath = SaveDIBtoPNG(hDib, imgDir & "\image" & i & ".png")
      imgPath = Mid(imgPath, Len(docDir) + 2) ' make relative '
      imgPaths.Add imgPath, CStr(imgHash)
    End If

    ' dispose clipboard '
    Call EmptyClipboard
    Call CloseClipboard

    ' replace the shape with a linked picture and restore the scale '
    Set rg = sh.Range
    sh.Delete
    doc.Application.ChangeFileOpenDirectory docDir ' set relative folder '
    Set sh = doc.InlineShapes.AddPicture(imgPath, True, False, rg)
    sh.ScaleWidth = scaleW
    sh.ScaleHeight = scaleH
  Next

  doc.SaveAs2 fname
End Sub

Related functions/procedures:

Private Declare PtrSafe Function CLSIDFromString Lib "ole32" (ByVal lpsz As LongPtr, pclsid As Byte) As Long
Private Declare PtrSafe Function RtlComputeCrc32 Lib "ntdll" (ByVal start As Long, ByRef data As Any, ByVal Size As Long) As Long
Private Declare PtrSafe Function GlobalLock Lib "kernel32" (ByVal hMem As LongPtr) As LongPtr
Private Declare PtrSafe Function GlobalUnlock Lib "kernel32" (ByVal hMem As LongPtr) As Boolean
Private Declare PtrSafe Function GlobalSize Lib "kernel32" (ByVal hMem As LongPtr) As LongPtr
Private Declare PtrSafe Function OpenClipboard Lib "user32" (Optional ByVal hwnd As LongPtr) As LongPtr
Private Declare PtrSafe Function GetClipboardData Lib "user32" (ByVal wFormat As Integer) As LongPtr
Private Declare PtrSafe Function EmptyClipboard Lib "user32" () As Long
Private Declare PtrSafe Function CloseClipboard Lib "user32" () As Long
Private Declare PtrSafe Function GdiplusStartup Lib "gdiplus" (token As LongPtr, cfg As Any, ByVal hook As LongPtr) As Long
Private Declare PtrSafe Function GdiplusShutdown Lib "gdiplus" (ByVal token As LongPtr) As Long
Private Declare PtrSafe Function GdipCreateBitmapFromGdiDib Lib "gdiplus" (ByVal hdr As LongPtr, ByVal data As LongPtr, img As LongPtr) As Long
Private Declare PtrSafe Function GdipSaveImageToFile Lib "gdiplus" (ByVal img As LongPtr, ByVal path As LongPtr, riid As Byte, ByVal cfg As LongPtr) As Long
Private Declare PtrSafe Function GdipDisposeImage Lib "gdiplus" (ByVal img As LongPtr) As Long

Private Function GetDIBHashCode(hDib) As Long
  Dim pDib As LongPtr, bmSize As Long, sz As Long
  pDib = GlobalLock(hDib)
  If pDib Then Else Err.Raise 9, , "GlobalLock failed"
  GetDIBHashCode = RtlComputeCrc32(0, ByVal pDib, GlobalSize(hDib))
  GlobalUnlock hDib
End Function

Private Function SaveDIBtoPNG(hDib, filePath As String) As String
  Dim cfg(0 To 7) As Long, clsid(0 To 15) As Byte, pDib As LongPtr, hGdi As LongPtr, hImg As LongPtr
  CLSIDFromString StrPtr("{557CF406-1A04-11D3-9A73-0000F81EF32E}"), clsid(0) ' PNG encoder '
  cfg(0) = 1&  ' GdiplusVersion '
  pDib = GlobalLock(hDib)   ' lock BITMAPINFOHEADER + image bytes '
  If pDib Then Else Err.Raise 9, , "GlobalLock failed"
  If GdiplusStartup(hGdi, cfg(0), 0) Then Err.Raise 9, , "GdiplusStartup failed"
  If GdipCreateBitmapFromGdiDib(pDib, pDib + 40, hImg) Then Err.Raise 9, , "GdipCreateBitmapFromGdiDib failed"
  If GdipSaveImageToFile(hImg, StrPtr(filePath), clsid(0), 0) Then Err.Raise 9, , "GdipSaveImageToFile failed"
  If GdipDisposeImage(hImg) Then Err.Raise 9, , "GdipDisposeImage failed"
  If GdiplusShutdown(hGdi) Then Err.Raise 9, , "GdiplusShutdown failed"
  GlobalUnlock hDib
  SaveDIBtoPNG = filePath
End Function

Private Function TryGetValue(obj As Collection, Key, outValue) As Boolean
  On Error Resume Next
  outValue = obj.Item(CStr(Key))
  TryGetValue = Err.Number = 0
End Function

Private Sub MakeDir(path)
  If Len(Dir(path, vbDirectory)) = False Then
    MkDir path
  ElseIf Len(Dir(path & "\")) Then
    Kill path & "\*"
  End If
End Sub

New solution

Method

For each InlineShape (working in reverse), if it's a wdInlineShapePicture

1. Copy it to a temporary document
2. Save the temporary document as .docx
3. Copy the temporary document as a .zip file
4. Extract the contents of the *.zip/word/media folder to a temporary folder
5. Move and rename the only file in that folder to the destination folder
6. Delete the shape
7. Create a field that links to the newly processed file, where the shape used to be

Code

Option Explicit

Sub Example()

    MakeDocMediaLinked ActiveDocument

End Sub

Sub MakeDocMediaLinked(ByRef Doc As Document)

' iterate through each image

Dim i As Long
Dim shapeCollection As InlineShapes
Dim tempDoc As Document
Dim fso As New FileSystemObject  ' early binding; add a reference to Microsoft Scripting Runtime (scrrun.dll)
Dim oShell As New Shell32.Shell  ' early binding; add a reference to Microsoft Shell Controls and Automation (shell32.dll)
Dim currentMediaFileNameSource As String
Dim currentMediaFileNameNew As String
Dim shp As InlineShape
Dim rngToRemove As Range, rngToInsertInto As Range

Const tempDocFilePathDoc As String = "C:\test\temp.docx"
Const tempDocFilePathZip As String = "C:\test\temp.zip"
Const tempMediaFolderPath As String = "C:\test\temp\"
Const destMediaFolderPath As String = "C:\test\images\"

MakePath tempMediaFolderPath ' make the temporary folder in which to store an image, if it doesn't already exist
MakePath destMediaFolderPath ' make the images folder in which to store the images, if it doesn't already exist

Set tempDoc = Application.Documents.Add(Visible:=False) ' create the temp doc, hide it
tempDoc.SaveAs2 FileName:=tempDocFilePathDoc ' save the temp doc

Set shapeCollection = Doc.InlineShapes

For i = shapeCollection.Count To 1 Step -1 ' working backwards through the collection
    Set shp = shapeCollection(i)
    If shp.Type = wdInlineShapePicture Then
        tempDoc.Range.Delete ' clear the temp doc
        tempDoc.Range.FormattedText = shp.Range.FormattedText ' copy the image into the temp doc
        tempDoc.Save ' save the temp doc
        fso.CopyFile tempDocFilePathDoc, tempDocFilePathZip ' copy the temp doc and rename to a temp zip file (will overwrite existing zip)
        oShell.NameSpace(tempMediaFolderPath).CopyHere oShell.NameSpace(tempDocFilePathZip & "\word\media\").Items ' copy the one media file to a destination
        currentMediaFileNameSource = Dir(tempMediaFolderPath) ' get the name of the media file
        currentMediaFileNameNew = "media-" & i & Mid(currentMediaFileNameSource, InStrRev(currentMediaFileNameSource, ".")) ' names the files media-4.jpeg, media-3.png, etc.
        fso.CopyFile tempMediaFolderPath & currentMediaFileNameSource, destMediaFolderPath & currentMediaFileNameNew ' copy and rename the file into the destination folder
        fso.DeleteFile tempMediaFolderPath & currentMediaFileNameSource, True ' delete the temporary file
        Set rngToRemove = shp.Range ' set the range that we will be removing, i.e. the shape range
        Set rngToInsertInto = shp.Range ' set the range that we will be inserting the field into, i.e. the start of the shape range (1)
        rngToInsertInto.Collapse wdCollapseStart ' set the range that we will be inserting the field into, i.e. the start of the shape range (2)
        rngToRemove.Delete ' remove the shape
        Doc.Fields.Add Range:=rngToInsertInto, Type:=wdFieldEmpty, PreserveFormatting:=False, _
        Text:="INCLUDEPICTURE """ & Replace(destMediaFolderPath & currentMediaFileNameNew, "\", "\\") & """ \d" ' 4. add the field, we refer to destMediaFolderPath & currentMediaFileNameNew in the field definition
    End If
Next i

tempDoc.Close SaveChanges:=False ' close the temp doc

fso.DeleteFile tempDocFilePathZip, True ' delete the temporary zip
fso.DeleteFile tempDocFilePathDoc, True ' delete the temporary doc
fso.DeleteFolder Left(tempMediaFolderPath, Len(tempMediaFolderPath) - 1), True ' delete the temporary folder

Set fso = Nothing
Set oShell = Nothing

End Sub

Sub MakePath(ByVal tempPath As String)

Dim fso As New FileSystemObject

Dim path() As String
Dim path2() As String
Dim i As Long

Do While Right(tempPath, 1) = "\" ' remove any ending slashes
    tempPath = Left(tempPath, Len(tempPath) - 1)
Loop

path = Split(tempPath, "\")
ReDim path2(LBound(path) To UBound(path))

i = LBound(path)
path2(i) = path(i)
If Not fso.FolderExists(path2(i) & "\") Then Exit Sub ' if the drive doesn't even exist, then exit
For i = LBound(path) + 1 To UBound(path)
    path2(i) = path2(i - 1) & "\" & CleanPath(path(i))
    If Not fso.FolderExists(path2(i) & "\") Then fso.CreateFolder path2(i)
Next i

Set fso = Nothing

End Sub

Function CleanPath(ByVal tempPath As String)

Dim i As Long
Dim invalidChars As Variant

invalidChars = Array("/", ":", "*", "?", """", "<", ">", "|")

For i = LBound(invalidChars) To UBound(invalidChars)
    tempPath = Replace(tempPath, invalidChars(i), " ")
Next i

CleanPath = tempPath

End Function

After

images folder

document (showing fields)

John, yet another attempt. Runs fine with your test document and my docs as well.

Made the code 2 pass. I found that sometimes original .jpg files will be saved as .jpeg files in the .zip file Also sometimes .png files will be saved in .zip file as .jpeg. I did not put any effort on finding out why. Instead I modified my code to cope with this fact. Here is the result which will handle any number of duplicates.

'********************************************************************
'* Replace original images with links to locally extracted images
'* Ver. 1.02 2017-10-04 peakpeak
'*
Option Explicit
Const IMAGEBASENAME = "image"
Const JPEG = "jpeg"
Const JPG = "jpg"
Sub MakeDocMediaLinked()
    Dim Doc As Document
    Dim Rng As Range
    Dim StrOutFold As String
    Dim StrDocFile As String
    Dim StrZipFile As String
    Dim imgName As String
    Dim StrMediaFile As String
    Dim imgNum As Integer
    Dim imgCount As Integer
    Dim i As Integer
    Dim ordinalNum As Integer
    Dim imgOrdinals As New Collection
    Dim objShape As InlineShape
    Dim Obj_App As Object

    Application.ScreenUpdating = False
    With Application.Dialogs(wdDialogFileOpen)
        If .Show = -1 Then
            .Update
            Set Doc = ActiveDocument
        End If
    End With
    If Doc Is Nothing Then Exit Sub
    With Doc
        StrDocFile = .FullName    ' ID the document to process
        StrOutFold = Split(StrDocFile, ".")(0) & "_Media"
        .Close SaveChanges:=False
    End With
    If Dir(StrOutFold, vbDirectory) = "" Then MkDir StrOutFold    ' Test for existing output folder, create it if it doesn't already exist
    '*
    '* Delete any files in the output folder. On Error Resume Next not used
    '*
    If Dir(StrOutFold & "\*.*", vbNormal) <> "" Then Kill StrOutFold & "\*.*"
    ' Create a Shell App for accessing the zip archives
    Set Obj_App = CreateObject("Shell.Application")
    ' Define the zip name
    StrZipFile = Split(StrDocFile, ".")(0) & ".zip"
    ' Create the zip file, by simply copying to a new file with a zip extension
    FileCopy StrDocFile, StrZipFile
    ' Extract the zip archive's media files to the temporary folder
    Obj_App.NameSpace(StrOutFold & "\").CopyHere Obj_App.NameSpace(StrZipFile & "\word\media\").Items
    Do While Dir(StrZipFile) <> ""     ' Delete the zip file - the loop takes care of timing issues
        Kill StrZipFile
    Loop
    StrMediaFile = Dir(StrOutFold & "\*.*", vbNormal)     ' Get the temporary folder's file listing
    Documents.Open FileName:=StrDocFile
    With ActiveDocument
        imgCount = .InlineShapes.Count
        '*
        '* Pass 1, collect ordinal numbers for all unique images
        '*
        ordinalNum = 1
        For imgNum = 1 To imgCount
            Set objShape = .InlineShapes(imgNum)
            imgName = objShape.AlternativeText  'Contains the full path to the original inserted image
            i = imgOrdinals.Count               'Current count of image ordinals
            On Error Resume Next
            imgOrdinals.Add ordinalNum, imgName    'Error if duplicate
            On Error GoTo 0                 'Always reset error handling after Resume
            If i <> imgOrdinals.Count Then ordinalNum = ordinalNum + 1 'Ordinal added
        Next imgNum
        '*
        '* Pass 2, replace images with links
        '*
        For imgNum = 1 To imgCount
            '*
            '* Get the (next) image
            '*
            Set objShape = .InlineShapes(imgNum)
            '*
            '* Get the original full path of the image
            '*
            imgName = objShape.AlternativeText  'Contains the full path to the original inserted image
            '*
            '* Original extension and extension in the .zip file might differ due to internal algorithms in Word
            '* Get the image file name in *_Media folder based on its ordinal number and regardless of original extension
            '*
            StrMediaFile = Dir(StrOutFold & "\" & IMAGEBASENAME & imgOrdinals(imgName) & ".*", vbNormal)
            '*
            '* Get the range where we want the link to appear
            '*
            Set Rng = objShape.Range
            '*
            '* Delete the image from the document
            '*
            objShape.Delete
            '*
            '* Replace the image with a link to a saved disk image in the *_Media folder
            '*
            .Fields.Add Range:=Rng, Type:=wdFieldEmpty, PreserveFormatting:=False, _
                        Text:="INCLUDEPICTURE """ & Replace(StrOutFold & "\" & StrMediaFile, "\", "\\") & """ \d"
        Next imgNum
        .Fields.Update
    End With
    Set imgOrdinals = Nothing
    Application.ScreenUpdating = True
End Sub