Ian Sammis writes: "I've now received confirmation from Corel Tech Support that WordPerfect cannot import graphics under system 7.6. The problem is apparently that the code which checks to ensure that the Modern Memory Manager is enabled is broken by the fact that it no longer can be turned off! A fix is apparently planned within a week, and will be available from their ftp site."
Update: The WordPerfect 3.5.3 update is now available. (Thanks Version Tracker)