I continue to see tips that tell you that you have to Create Outlines in Illustrator in order to put a photo inside type. That's just not correct! All you need to do is put some text on top of a photo (the photo needs to be under the text - opposite to Photoshop), select both the Photo and the type and press Command 7 (PC: Control 7) or use Object>Clipping Mask>Make. The type remains editable.
From Illustrator CS2 Killer Tips
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