Glenn,
What file format is/are the photo(s)? Also, pay attention to how large the file size is of the photo before bringing it into to ArchiCAD. Although I have seen ArchiCAD handle decent image sizes, it works much better if the photo is optimized in a photo or bitmap editor first so that you are not bringing in more data than you need to. A photo printed at 100 dpi on plain paper will look just as good as one printed at 300 dpi. An 8 x 10 photo should then be 800 x 1000 pixels max. Using photo paper is a different story.
Also, make sure that the photo is the actual cause of the publisher failure by publishing the same sheet without a photo. What happens then?
Best regards,