I was just in the process of looking into that myself. I am not real current with HTML but you can introduce white space inside the wrap
by using the vspace and hspace attributes within the img tag..
As the attributes imply , the VSPACE attribute holds a specified number of pixel spaces above and below an aligned graphic.Space to the right and/or left is added using the HSPACE attribute.
PHP Formatted Code<
IMG SRC ="graphic.gif"
This text will wrap around the gif image leaving 12 pixels of white space.
Of course style sheets are the way to go if you are up to it , But the old way using HTML tags will work also.
I hope this helps .