Select your text, convert it to outlines. Position the image above the text where it needs to be, cut it, then select the letters and choose PASTE INTO.
After you convert your text to outlines, have it selected and File > Place your image. It will be placed into the frame created by the letters, after which you can modify its position with the direct selection tool and/or the contextual menu options.
(BTW this should be posted in the InDesign forum, it has nothing to do with color management.)
There was a good discussion about this in ID forum
1. Place image
2. Draw white box to cover image
3. Place text on top
4. Set opacity of text (effects panel) to 0. Text dissapears
5. Group with white box from step 2
6. With group selected choose Knock Out Group (effects panel)
This preserves live text.
You are an angel!!!!!!! Thank you so much; I will try it tomorrow morning (just got in from meeting and it is late)