In reply to sweenyt:
Do the captions have any text other than 'fig 1' associated with them? Check what you are inserting as a reference (I.e. Just label and number or full wot sit). It sounds as though you are picking up a para break with every caption you are inserting as a reference.
You can stop fields updating by selecting each one and then it's something like Ctrl f12 , I can never quite remember, but google will help