(Like placed image was 72 dpi, changed in photoshop to 300dpi, dimension must change in picture box now, but with the presence of the Badia XT, the image was not updated.)

That is an interesting problem.

For the record, I test things like this on my home system. My configuration is:PowerMacG4, 1.25GHz; Mac OS X 10.3.7; QuarkXPress 6.5.
When I tried out the XTension, the picture dimensions didn’t change either; however I understood that that was the point of ReplaceInPlace-to reinsert a picture without having to resize and reposition it. That’s where I see the value in it, anyway. Of course, if you’d like tofollow up to clear me up on exactly what what meant (If I missed your point) feel free to do just that. In the meantime, I’ll do a little more playing around with it.

I still recommend this XTension (it’s free, and if it doesn’t work you can always trash it), but I would advise readers to take Thomas’s comment into account, and remind everyone that while I can tryout any given XTension to a certain degree, I cannot guarantee that any XTension will necessarily work without flaw on your setup. As always, caveat emptor.