The blends were done in Xara using the linear transparency tool.

As for the picture placement, I assume that you are wanting to wrap the text around an image. I guess you could use the new Repel feature in Xtreme 4, I haven't personally had much luck with that. I don't really have any experience with Dreamweaver either.

However if you want it in plain old HTML, just place the following code alongside your block of text and it will wrap itself around the image:

<IMG SRC="yourimage.jpg" BORDER="0" ALIGN="right" VSPACE="5" HSPACE="5">Your text goes here, etc.

Obviously if you want to place the image on the left of the text change the alignment accordingly. The VSPACE and HSPACE commands will put a few pixels of blank space around the image so that your text doesn't butt right up to it. If you need more or less space then adjust the figures accordingly.

BTW don't use Word for creating or editing HTML. It'll add so much extra nonsense to the document you just wouldn't believe it. Just open the page from your hard drive in Internet Explorer, right click and select "View Source". This will open up Notepad. Just edit the HTML, save the changes and refresh the page to see the result