When you look at the selected image -- does it have the little black square
cornerstones-- connected by a line  -- or little black boxes (white
interior) corner stones.  If they are the little black ones -- the object is
inserted "in line with text" and you are severly limited on the way your
text can interact with the images.

With the image selected --  go to FORMAT --> PICTURE (IMAGE?  OBJECT?) it's
at the bottom of the Format Menu -- and open the Format Dialog Box.  I
haven't used 97 for a while -- so I don't remember which TAB it is on -- but
somewhere there is an option to FLOAT OVER TEXT -- which will convert the
way the image interacts with the text.  Once that is selected -- you should
be able to change the wrapping -- which can also be done on one of the other
tabs in that Format Object dialog box.

I believe this is correct -- but as I said -- I haven't used 97 for a
while -- and with 2000 things have changed.... but I believe that should do
what you are looking for.

Good Luck.

Kate in MN