Lance,
You can accomplish what you want by creating a single-cell table, and placing text and graphic inside the cell. Adjust the size of the table to your desired size. You then set the table's Text wrapping property to "Around" to make the cell float on the page. Next, you select the graphic, and choose the desired With Text Wrapping setting to make the graphic float. These settings allow you to drag the cell anywhere you want on the page just like a textbox, and also lets you drag the graphic around inside the cell with text wrapped around it. 
However, there is a Word bug that sometimes bites if you change the table's Text wrapping property when it contains a floating graphic. The bug will cause a a black box to sometimes appear behind the graphic which cannot be deleted or undone. If this occurs you have to make Word redraw the window by switching views (e.g., between Draft view and Print Layout view), or by saving and reopening the document.