You will likely want to change the layout of your text box. You'll find the options for this on the Layout tab of the Format Text Box dialog box.
Word 2007 provides you with a variety of options for changing the layout of your text box. For example, you can have the text wrap around the text box, or you can insert the text box inline with the document text.
Select how you would like your text box to appear. For advanced options, such as the amount of space around the picture, click Advanced
Once you’ve specified your options, click OK.

