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hmm, I don't know really know what you are looking after. I have added a 1 pixel border to every image (plus a small margin so that the images don't get too near the text) that appears inside each news item this way inside the style.css, there are other style combinations that could suite your needs:
.itemBody img
{margin: 5px; border: 1px solid #000000;}
the wrapping part can be handled easier using koivi (there could be other better text editors, I am rather unhappy with koivi with the way it handles html), yet, koivi is easy to integrate. Do you have it?
