Use the align attribute in the img element. To be forward compatible, also use the the CSS float property.

First place the image tag at the right before the line you want to wrap around it:

<p><img src="nad.gif">Words to wrap around image.</p>
The add the attribute and property:

to float the image to the right, with text wrapping around the left:
<img src="nad.gif" align="right" style="float: right">
or, to float the image to the left, with text wrapping around the right:
<img src="nad.gif" align="left" style="float: left">