Do you mean that you are getting any error message when you try to place the image? If not, does the loaded cursor display after you've chosen the file? Are you using File>Place?
What file format is the file? Try resaving it in Photoshop and try again.
Maybe your photo is too big to be shows in your space, try Ctrl+Alt+Shift+E to fix the pic into your square.
Becouse you are placing the photo in different box than the text, right?