You could try this variation.
Sub AddPictures()
Dim N As Long
On Error Resume Next
Const SourceFolder = "C:\temp\test\"
For N = 3 To Cells(Rows.Count, 3).End(xlUp).Row
Cells(N, 2).Select
ActiveSheet.Shapes.AddShape msoShapeRectangle, 50, 50, 100, 100
ActiveSheet.Shapes(ActiveSheet.Shapes.Count).Fill.UserPicture SourceFolder & Cells(N, 3) & ".jpg"
With ActiveSheet.Shapes(ActiveSheet.Shapes.Count)
.Top = Rows(N).Top + 2
.Height = Rows(N).RowHeight - 4
.Left = Columns(2).Left + 2
.Width = Columns(2).Width - 4 + 2
End With
Next N
End Sub
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