Citation does not appear in order of appearance in document

Greetings, it seems that in my document for some weird reason the counting of citaion begin from a image that i have inserted (with its reference in the caption). This results in the first citaion of the document being counted as the 3rd and thus screwing up the order of the citation. Anyone knows how i can fix this? Thank you in advance

Ah yes, the old caption/text box/ vs frame issue.  

My students all use the fix described here to insert frames to contain images. 

For further discussion, see this thread for one of the discussions on how Word approaches fields in text boxes and the knowledgebase article here.