Design Specifications and Guidelines - Working with OLE Embedded and Linked Objects
A container displays handles for an embedded or linked object when the object is selected individually. When an object is selected and not active, only the scaling of the object (its cached metafile) can be supported. If a container uses handles for indicating selection but does not support scaling of the image, use the hollow form of handles.
More Information
For more information about the appearance of handles, see Chapter 14, "Visual Design."
When an embedded object is activated for visual editing, it displays its own handles. Display the handles within the active hatched pattern, as shown in Figure 12.36.
Figure 12.36 An active embedded object with handles
How the object is changed when the user drags the handle is defined by the embedded object's application. The recommended operation is cropping, where you expose more or less of the embedded object's content and adjust the viewing portion of the object. If cropping is inappropriate or unsupportable, use an operation that better fits the context of the object or simply support scaling of the object. If no operation is meaningful, but handles are required to indicate active selection, use the hollow handle appearance.
Fundamentals of Designing User Interaction
Design Specifications and Guidelines