How do you create space around photos and text ?...

That is a pretty design-specific question.  I'd start, though, by trying CSS and apply a margin around the IMG element:

img{

margin: 2px;

}

That creates a 2 pixel margin around every image element.  If you want it more specific, you can do that:

img.myClass{

  margin: 0px 5px 10px 10px;

}

That places no margin at the top, 5 pixels on the right, and 10 pixels on the bottom and left sides of any image that has the attribute: class="myClass"

Other ways you could do it would be to put the image in a one-cell table, but CSS is the correct way to do it.

You'll want to do some cross-browser checking, though, because I've found IE and FireFox don't always agree...

Nathan Allen:

After you insert the image, click the "Source View" button near the bottom of the page. This will show you the HTML view.

Find the image you inserted. It will look something like:

<IMG alt="Description of image here" src="../images/content/pagebuilder/1496.jpg" border=0 />

Then just add the CSS that Michael was talking about (style="margin: 5px") inside of the IMG tag, like so:

<IMG alt="Description of image here" src="../images/content/pagebuilder/1496.jpg" border=0 style="margin: 5px"/>

You can change the margin from 5px to whatever you want.

One thing to note is that Outlook 2007 does not support margin (or padding) on the img tag, so it is often best to use the vspace and hspace attributes instead:

<IMG alt="Description of image here" src="../images/content/pagebuilder/1496.jpg" border=0 vspace="5" hspace="5" />