Create Inline Type?

Hi:
I have been trying to figure out the how to create inline inside the type
but still not figure out. Do you know what the best way is?
If you could have some screen shots, I will be appreciated.

Before i can help need to make sure that i know what you mean. Do you mean as in CSS when you have type inside a rectangular box on a web page?

if want to have you cursor follow the outline of a letter:

1) Right click and select create outline
(while image is selected)

2) Right click image again and select
Relese compound path

3) go to object, Textwrap options and select the offset

4) then select the type on a path tool

I hope that anwsers your question.
:)