"By approving this book, you certify that you have received and approved a copy. Each additional modification to your work after approval could incur a printer/distribution fee.
I don't recall seeing that. But it should say that Each additional modification to your work after Approval will require the purchase and Approval of another Proof. Although it should only say that if an ISBN has been used.
Make your pictures 8.75 x 11.25 inches. Use the custom size option in Word to make your document 8.75 x 11.25 inches. Set the margins to zero all round. Insert your pictures into Word and then create your PDF at 8.75 x 11.25 inches. Upload your PDF to Lulu and your pictures will print to the edge of the page.
A sadder and a wiser man, he rose the morrow morn; eh Ron?