Text Position when inserting in line with text

[J]

I am using word 2003 and trying to insert pictures in line with text. When I
do this it puts the text in the lower left corner in front of the picture.
Is there a way to have word put the text in the upper left corner? I'm not
sure whether the example below will show up how I want, but I am not sure how
else to explain it.

Currently
*********
* *
* PICTURE*
* *
1.) *********

What I would like it to do.

1.) *********
* *
* PICTURE*
* *
*********

 

[Keith Howell]

If you specify text wrapping (little dog icon) for your picture you will have
more freedom to move your picture about

 

[jhsp]

You have several options for text wrapping. I find 'Square' suits most
needs. With this option you can drag your picture wherever you want. For
smaller movements, select your picture and use the arrow keys. For really
fine movements Ctrl+Arrow. By the way the wrapping tool is on the picture
toolbar.