Do you still have this problem with the new version of OOo in the ppa at
https://launchpad.net/~openoffice-pkgs/+archive ?
If you use Insert->Picture->From File it will default to including the
image directly in the file, there is a checkbox to only cause it to link
to the file instead which is what you were seeing.
** Changed in: openoffice.org (Ubuntu)
Status: New => Incomplete
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Intrepid: OpenOffice.org Impress presentation is destroyed when you change
location of pictures that are part of the presentation
https://bugs.launchpad.net/bugs/342798
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