A family of Microsoft word processing software products for creating web, email, and print documents.
In Word 2003 and earlier, circular white handles indicate a shape or image that has a wrapping style other than In Line With Text. Inline objects have square black handles. When you select the image, you should get the Picture toolbar (if you don't, right-click on any toolbar and select Picture from the list). Click on the Text Wrapping button (the one with the dog icon) and choose some wrapping style other than In Line With Text.