Text wrapping in Publisher works a little differently to how it works in Word. To configure how text wraps around an image in Publisher, click the picture and choose Text Wrapping from the Picture toolbar.
If you’re creating a Web publication this won’t be an option – it is only possible to do this with a Print publication. Choose a wrapping option from those shown. To configure text to wrap tightly around an image choose Tight and then choose Edit Wrap points option to create the exact shape for text to wrap around the image.
When you do, if you drag the wrap points inside the image, that part of the image will be cropped away – this is not the behaviour you might expect if you’re use to working in Word. You’ll need to do a workaround if you want text to wrap irregularly around an image but not so as the image is lost.
To do this, place the image below the text and set its wrapping to None. Draw an irregular shape over the image and set its wrapping to tight. This uses the shape to manage the text wrapping and thus avoids damaging the image. Format the shape by right clicking it and choose Format AutoShape, Colors and Lines tab, set the Line Color to No line and the Fill Color to No fill so you won’t see it in the final presentation.