I am working on a small program that produces a story and prints it into a Microsoft word file. I'm wondering is there any way to input an image into this word file and if so could I pointed in the right direction to come about producing it for myself?
Well if you're talking about docx files, they're just XML files in a ZIP container.
So if you can work out the difference between a file1.docx and file2.docx, where file2.docx is just file1.docx with the addition of an image, you should be able to work out the XML transformations necessary to add images to documents.