Photoshop is an OLE 2.0 server, which means it supports embedding or linking an image in an OLE container application (usually a word-processing or page-layout program). For example, you can insert Photoshop files and selections into other OLE applications, such as Adobe PageMaker, Adobe FrameMaker, and Microsoft Word, using copy and paste or other methods.
Linking lets you place a link in the OLE container file that refers to the Photoshop file on the hard drive.
Embedding lets you insert the Photoshop file into the OLE container file.
After the image is in the container application, you can double-click it for editing in Photoshop. When you close the image in Photoshop, it is updated in the container application.
Copy a selection in Photoshop, and insert it in your OLE container application using the application’s Paste Special command. Refer to your word-processing or page-layout application documentation for more instructions. Pasted selections can only be embedded, not linked.
Use your OLE container application’s Insert Object command to insert a new Photoshop image or existing Photoshop file as an OLE-embedded or OLE-linked object. Refer to your word-processing or page-layout application documentation for instructions.