[MacBook] Microsoft Office 2010 via Parallels 8 problem

 

I am running Microsoft Office 2010 via Parallels 8 on a Macbook Pro (Retina)(2012)

If I wish to attach a file in Outlook 2010 from the iPhoto library, I get the message:
"Some library features are unavailable due to unsupported library locations"
The same problem occurs in all the other Microsoft Office 2010 applications. I cannot insert a picture into any document when using the 'insert picture button'.
Have any of you come across this problem and overcome it? Or is the Parallels version of Office 2010 simply not fully compatible with my Mac's iPhoto app?
Thanks.

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