Article contributed by Bill Coan

Wrapping is an attribute of a floating object that dictates how the object affects the text layer. To control this attribute bring up the Format Object (or Format Picture) dialog box and click the Wrapping tab at the top of the dialog box.

When wrapping is set to None (Word 97) or Behind Text (Word 2000), the floating object has no effect on the text layer and as a result text flows on the page as though the object weren't there. 

When wrapping is set to any other value, the text reacts to the presence of the object, flowing around it according to the setting chosen. 

Note: In order to flow to the left or right of an object, the text needs to see a one-inch-wide area between the object and the page margin. If the available space is less than one inch, the text won't flow there but skip down below the object instead.