Here's my prob. i'm using wordpress (not the updated version) for my baby blog (http://ourbabyblogger.com/) so just like any blogger, before i publish my work, i see to it that everything is formatted (words are aligned, images centered, etc.) but to my dismay, it still ends up looking like a crap. that's why sometimes i have no choice but to put the photos at the end of the content. is the template have something to do with this or i really need to get the latest version of WP?
your site is not opening up, though generally you should be using the add image button in visual mode and then use the align function in the dialog box which opens up, if you try to use ftp to your server you will find it harder to align the images and text. if you stil get stuck try to insert the images and text into a table other here will point out that there is a plugin wp-table