Hi Sue,
Yes there was something in the previous version.
In the latest editor after you have inserted your photo/image go into the Advanced tab and in the Style field type float: left; and you should then be able to place/drag it to any part of the page (providing you want it on the left side, I've wondered what would happen if you substituted centre or right as I gave never tried this).
I agree that a drop down in the style box (as before would be really useful). I think that I may have suggested this before.
Alan