Photobook Cropping pictures

[Stinksmom]

I am trying to figure out the iphotobooks, I got one from a friend and love it, but as I am moving the pictures to a position on my book pages a tick/check mark appears to signify I am using the picture there it is in a grey box,

What I need to know is do they crop the picture in that shaded grey area?? or do the pictures come as you expect and see on the pages as you set it up

I hope this is clear

Thanks for your help