This one comes directly from the iWeb Help

To make text wrap around an object:

1) Click the text where you want to place the object, and then insert or paste the object at the insertion point.

2) Select the object.

3) If the Text Inspector isn’t open, click Inspector in the toolbar (or choose View > Show Inspector), and then click the Text Inspector button.

4) Click Wrap

5) Select the “Object causes wrap” checkbox.

6) Click a Wrap button to make the text wrap to the right or left of the object.

7) To adjust the amount of space between the object and the text, enter a new value in the Extra Space field.

To undo text wrapping, select the object and deselect “Object causes wrap”

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