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Wrapping text around an image frame
On the "Properties" window (Right-click on the image, select "Properties"), on the "Shape" tab there are several wrapping options.
Adding a padding space around an image frame
First of all, select the wrapping style as described in session above.
I find it easier to add a border to the image the same color as background color. To make that, open the "Colors and Fills" windows in menu "Edit" -> "Colors and Fills...", then add a color that is equal to the background color. Then, add a new "Line" style by opening the "Style Manager" window in menu "Edit" -> "Styles...". Select the color you just created and the line width for the desired padding. After that, select the image, open the properties window (Right-click on the image, select "Properties"), open the "Line" tab and select the line style you just created.
Another way to achieve the same result is to edit image frame shape, by opening the "Properties" window and, on the "Shape" tab, clicking on the "Edit..." button to edit the shape.