Pages '09: What Are Floating and Inline Objects?
If you want an object to remain in place so that text on the page flows around it, use a floating object.
Floating objects are anchored to a position on a page. Typing more text on the page, does not affect the position of a floating object, but you can drag a floating object to reposition it. Drag any of its selection handles to resize it.
If you want the object embedded in text flow so it is pushed along as the text grows, use an inline object.
Inline objects are embedded in the text flow. If you type more text above them, they are pushed along as the text grows. The selection handles on the top and left side of inline objects are inactive. You cannot drag these handles to resize the object; you can only resize it by dragging the active handles.
If you are placing a graphic or shape inside another shape, text box, or table cell, it can only be added as an inline object. Inline images are automatically resized to fit within the layout margins of the document. To move an inline object to a different position within the text, select it and drag it until you see the insertion point appear where you want to drop the object.
If you’ve added an object as one kind of object, and you want to turn it into the other kind of object, you can easily do so.
Select the floating or inline object you want to convert, and then click the Floating or Inline button in the format bar.
Select the floating or inline object you want to convert, click Inspector in the toolbar, click the Wrap button, and then select “Inline (moves with text)” or “Floating (doesn’t move with text)”.