Text Wrap is the best way to go. But you also want the graphic to move with the text.
So you need to create an Anchored Object. You can read about the topic in InDesign Help.
If you tried to cut and paste the graphic into the text, it won't work because it's just creating an inline graphic. You actually want to create the graphic to be anchored in the previous paragraph so you can also have the text wrap. Here are a couple screen captures to help you.
It's a lot easier to create this in InDesign CS5.5 (you didn't say which version of InDesign you're using) because you can drag from a blue square which appears at the upper right corner to where you'd like to anchor the file. It's a little trickier in earlier versions of InDesign.
I was messing around with anchored objects when you replied. Now I know I'm doing it the "right" way, feels good!
I'm at CS5 only, one reason to upgrade then...!
Steve Werner wrote:
If you tried to cut and paste the graphic into the text, it won't work because it's just creating an inline graphic. You actually want to create the graphic to be anchored in the previous paragraph so you can also have the text wrap.
That's just not true. Anchoring the image inline as the first character in the paragraph should work just fine. You'll need to adjust the offset (drag it down so it sits withthe bottom below the baseline), and make sure there is no positive wrap value applied to the left edge of the image frame to avoid pushing it away from the text frame, but the that's probably a better choice for making a picture "drop cap" as it's actually anchored into the correct paragraph and will work at the top of a column.
Thanks for the addition, Peter. That was a reply I was hurrying to finish before I headed out of the house to the gym so I apologize the inaccuracy.
Now with CS5.5 I don't often have to visit that crazy dialog box. I can just drag to anchor.
Also, if you have more than one of these, you probably want to do one by hand, then create an Object Style based on it, so that the rest of them are consistently formatted.