Firstly, Set pictures to come in as square or tight - Tools | Options |Edit
and half-way down on the left, Insert/paste pictures as. Secondly, ensure
that the Picture toolbar is visible when you click on a picture - View |
Toolbars |Picture (it disappears when you de-select the picture. When you
Insert | Picture from file (or use the Drawing toolbar) the picture should be
easily moved. You will notice the dog symbol on the Picture Toolbar is
similar to the one referred to in the first instruction. When you click on
this you can change to various options that might be more appropriate in
certain cases, ie behind text.

Does this help?

When you click on a picture, the Picture toolbar should be displayed. There
is a Text Wrapping button on that toolbar (dog icon) that can be used to
change the wrapping. There is also a Format Picture button that gives access
to the dialog, which has a Layout tab, on which there is an Advanced...
button.

If you don't see Picture on your Format menu, it is probably because you
don't have the picture selected. By default, the Format menu displays
Object..., but it is dimmed unless an object is selected; when an object is
selected, the menu item changes to reflect the type of object. If you don't
see any of these things, it may be that you still have adaptive menus (which
show only the most recently used commands) enabled. To change this, on the
Options tab of the Tools | Customize menu, check the box for "Always show
full menus."