I'm not exactly sure what you are asking to do. From the title it looks like you are trying to create a file that can be opened in Microsoft Word. These files typically have a ".doc" extension. Are you trying to insert an image into a ".doc" file? According to the API docs, PrintWriter is used to output text in a formatted way. Images are not considered text; they are stored as binary data. ".doc" files are NOT text, either. So the first step is to find out what the binary format is for a ".doc" file. Unfortunately, I don't know the technical details. In fact, Microsoft is typically tight-mouthed about releasing them. However, you might be able to find this information somewhere on the Web. Perhaps someone over at I/O and Streams will be able to help more.
There is nothing in the Java API that lets you do this. You would need to know how a Word file is formatted (and no, Microsoft won't tell you). Then you would need to write a program that produces those binary codes, both for the text and the image.
Why does it have to be a Word file? Could you produce HTML? A Word user could always import the HTML into Word.