You pasted the image "in-line", so it behaves as a single (albeit large) character. You can use tabs and spaces or Paragraph: Left Indent to move it horizontally.
To position it anywhere you like, you can cut it and paste "on top of" your text frame, in a frame of its own. You can use Text Wrap to make the text flow around it.
Which of these methods you want to use depends on what you'd like to happen when text reflows. Should the image stay where it is (and the text flows around it), or do you want to have it flow with the text?
Making it an anchored object -- which links it to a specific place in your text -- may also work for you, but you'll need to see if that works for your purposes.
Thanks for the reply - the tabs and spaces solution worked. The only problem left is being able to have the text wrap around the image. I clicked both the "wrap around object shape" and "wrap around bounding box" options in both the top menu and the Text Wrap dialogue box, and neither of them do the job for me. I am stuck with the image looking as if i've applied the "jump object" option to it, as you can see.
Text wrap on an inline object affects only the line in which it is located and following lines of text, not text before.
Perhaps this image should not be anchored at all. Select the frame an cut, then paste onto the pastebord someplace. now you can move it wherever you like and yout text wrap will behave the way you expect.
Anhored objects are useful when somthing has a solid positional realtionship to the text that needs to be maintianed if the text is edited and reflows, but they are not terribly flexible in terms other layout needs.
Thanks for the reply. I've got you. I now understand how the whole image place and text wrapping works.