You're going to have to provide some more details of the problem. It's not possible to paste an image inside of another image in InDesign. We may be dealing with semantics here, but it's hard to determine the problem from your initial description. A screen shot might help.
This still doesn't help. Which image are you referring to. What is it supposed to look like and what does it currently look like. I see two catalog pages but I have no idea what the problem is.