I definitely had to hunt to find out how to text wrap also. This is how I do it, and please, if there's anybody out there that knows a quicker, better way, please tell me!
First, write your text by using a text box given by a template, or by creating your own.
Second, drag the picture into the text, and, here's the catch, when you drag the picture into the text. Hold down the command(Apple) button. If you don't hold down the command button, iWeb doesn't know that the pic is going into the text and it lays it under the text.
Third, hightlight the pic and resize it to the size you want.
Fourth, with the pic still selected, click on the inspector. Click on "T" in the top middle. Click on Wrap in the top middle. Select "object causes wrap". Choose which direction you want the wrap to be.
And in four easy steps(or maybe eight or nine), you too have caused text to wrap around a picture. Maybe it's just me, but it seems wrapping text could be made a little easier.
Hope this helps!
