You can set up different relationships between pictures and text by controlling how the text wraps around a picture. You can choose text wrapping options by clicking the Text Wrapping tool 
on the Picture toolbar.
Square Text wraps around the frame rather than around the picture itself.
Tight Text wraps around the outline of the picture itself rather than around the frame.
Through Text wraps around the perimeter and inside any open portions of the picture.
Top and Bottom Text stops at the top of the picture's frame and continues after the bottom of the frame.
None Text acts as if the picture isn't there.
Edit Wrap Points Text wraps around the picture's perimeter, which you define precisely by repositioning points along it.
