Updating figures in word

I want to force Word to recompute image numbering so first image in document would be image 1, the second - image 2, etc. Will references (added through cross reference feature) to those objects be updated?

NOTE: You must be using automated caption numbering, Word’s heading styles (mostly), and automated cross-references (x-refs) for these steps to work.If you have a document with several sections and automated table/figure captions and x-refs to these, you might wonder how you can update these numbers etc.to reflect any changes you make, such as inserting new tables/figures/sections, or moving existing ones to other places in the document, or deleting some of them.I can work with Image captions, they are added fine in the doc.But when I add new ones in the middle, the captions are not updated and I end up having two or more captions having the same number. I believe what's happening is that your new captions are automatically numbered, but the references to them are not automatically updated. The first is easiest, but you have to remember to do it.

In MS Word 2007, at least the one I'm using, they're updated automatically. Upon inserting the third picture in the middle of "Picture 1" and "Picture 2", the "Picture 2" becomes "Picture 3" and the inserted one takes the caption of "Picture 2". I have a word document containing images and tables.These have captions which are numbered, like "Image 1-Example of something".Later on I decided to rearrange some of chapters of my document.However numbering of objects remained the same, so the first image is image 8, the second is image 3, etc.