How to Connect PowerPoint 2007 Shapes on a Diagram

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Click and drag the pointer over a selection handle on the other shape, and when that selection handle turns red, release the mouse button.

Red, round selection handles appear on the shapes where they are connected, and a diamond displays on the connector indicating that the two shapes are connected and will remain connected when you move them on a slide. The three types of connectors — (from top to bottom) elbow, straight, and curved.