With the pic selected: (1) in
Format>Picture|Layout|Advanced, have a look at "Distance
from Text." If these numbers are too large compared to
available space on your page, a chosen wrapping style may
not be able to manifest itself. Or (2) on the picture
TOOLBAR (View>Toolbars>Picture), under the "Text Wrapping"
button choose "Edit Wrap Points." This makes visible the
precise boundary between the picture and text. When you
click and drag on the now visible "points" of that
boundary, you can specifically modify the shape of the
wrapping(you can even ADD points to this line by holding
down CTRL and clicking on it.) A combination of "Distance
from Text" and "Edit Wrap Points" may solve your problem.

I want to have an inserted picture surrounded by text.