Hi Tammy-
You apparently haave an option set to insert grraphics as In Line... will
come back to that shortly.
To help with the current problem, select the WordArt object and use the
'Text Wrapping' button on the WordArt toolbar to set the wrapping to
something other than In Line with Text. Then you will be able to Free Rotate.
If the In Line setting is not what you typically prefer, go to
Tools>Options--Edit, and set the mode you want from the 'Insert/Paste
Pictures as:' list.
HTH |:>)