Processes in Microsoft 365 for setting up Office apps, redeeming product keys, and activating licenses.
Feel free to include a screen shot. Reference: How to include a screenshot in your post: http://answers.microsoft.com/en-us/windows/wiki/windows_other-windows_programs/how-to-include-a-screenshot-in-your-post/2594b08e-32a3-476a-85a6-b021181be7e4
However I don't know why you are getting the error and can offer no more fixes than I linked you to above. If you found the image online and saved it as a picture to your local hard drive then forget inserting clip art and instead insert a picture or picture frame and that saved image instead of clip art.
While I was able to search a limited number of pieces of clip art on my local computer with Pub 2010 as I demonstrated above, chances are most users are going to have to search the internet for better options even if they get this function to work correctly. Notice that I got just two images when I searched for 'cat' using Pub 2010. Just now I did the same search in Pub 2000 and got 105 options from the locally installed clip art collections.
The bottom line is that MS has decided that offering a locally installed collection of clip art with Publisher is no longer needed or the best choice whether it be installed or on-line. They are asserting that you can get a lot more options by searching the internet and I must concede that they are probably right. Here is the Bing search I just did for cat clip art and there certainly seems to be a lot more choices: https://www.bing.com/images/search?q=cat+clip+art&qs=n&form=QBILPG&pq=cat+clip+art&sc=8-12&sp=-1&sk=
I also noticed that you can do the same search in Google pictures, so you don't have to use Bing. As I was typing in that search I noticed with the autofill search I was given the option to search 'free' versions of clipart which is what I would suggest you use. I searched 'cat clip art free' and got this page: https://www.google.com/search?hl=en&site=imghp&tbm=isch&source=hp&biw=1028&bih=625&q=cat+clip+art&oq=cat+clip+art&gs_l=img.12..0l8j0i5l2.3936.7179.0.12075.12.12.0.0.0.0.224.1620.0j9j1.10.0.msedr...0...1ac.1.61.img..2.10.1609.pb0UhDFqc9I#hl=en&tbm=isch&q=cat+clip+art+free
I have to admit that as much as I hated to see the local collection and even the MS on-line collection of clip art go away, it does appear that you can get way more options using Bing or Google pictures and searching for free clip art that way. And finally, I would suggest you save the clip art as .png files which support transparency...it will give you more versatility in how you use the images vs. .jpg images.
DavidF