A graphic (picture) can be pasted into a diagram by copying it to the clipboard in another program and then choosing Paste from the Edit menu. The graphic can then be moved and resized. Graphics are sometimes useful for things like drawing a box around a group of objects in a diagram.
When objects in DesignerDraw overlap, it is not possible to control which one gets selected when the mouse is clicked inside both of them. Therefore, when using a graphic which surrounds one or more boxes, it is sometimes useful to use the option to not allow graphics to be selected. (See the Option menu for more information.)