This article explains the cause and solution for a BarTender problem that causes embedded image files to be cut off at the bottom.
In two of the image types, we found the bottom of the image gets cut off (bottom few pixels) in both label design view and when printed.
Certain files types do not render perfectly in BarTender. Based on feedback from clients, AVI and EPS file types are sometimes problematic. Switching to PNG file types seems to avoid the problem.
Converting images to PNG seems to be the best course of action for now.