Wrap Text Around a Picture
The Problem:
I'm trying to put a picture in my document with the text wrapping around it. But every time I insert the picture, Word puts it in line with the text.
The Solution:
The immediate fix for this picture is to right-click it, choose Format Picture, click the Layout tab, and select the "In front of text" option. You can specify the horizontal alignment by clicking the Advanced button and choosing the appropriate positioning and wrapping settings in the Advanced Layout dialog box. Alternatively, drag the graphic to the desired position.
If you want to make Word always place pictures in a different way than in line with the text, choose Tools 
Options, click the Edit tab, and choose the appropriate option (for example, "Behind text") in the "Insert/paste pictures as" drop-down list. Word 2000 doesn't offer this option.