How to wrap text around an includepicture after merge

[Mead@discussions.microsoft.com Stuart Mead]

I can happily create a merge doc with selective images (dependent upon merge
field values) and using a macro I can resize them.

But try as I have, I'm unable to automate the reformatting of the merged
text associated with each image. I want it to wrap the text to the right and
then below the image. Manually this is achieved using Format Picture | Layout
| Square. [This option is greyed out during record macro].

The closest I've got is by using a nested table (one cell) for the image
with the text wrapping in an enclosing table (one cell). But this still fails
because the 'empty' nested cell (when the image refers to a 1 pixel .jpg)
does not reduce to anything like the size of the image and so interferes with
normal text formatting.

Word 2003

Thanks S