DH reader Kunal wrote:

Is there a freeware tool that can monitor clipboard and save its contents as text and images?

DH suggested:

You could try ClipboardCC at http://bantamtools.com/Clipboardcc%20setup.exe. It monitors clipboard and saves text and images you have copied as files. It works with MS Windows XP or Vista and requires MS.NET Redistributable v. 2.0 or higher.