I just tried again, and at one point, I had the picture in place with text wrapped around like it should, but there was a big empty picture box sitting in the middle of the blog, and I could get rid of it. Like a picture over a picture.
So, I deleted ALL the pics (the one's I could find on the page), and started again. And, I'm back to a wrapped pic that WON'T enlarge when you click on it...