photo layout

Can I easily configure space around inserted photos? Like h-space and v-space, perhaps? Now is the time for all good men to come to the aid of the party. The quick brown fox jumps over the lazy dog. Now is the time for all good men to come to the aid of the party. The good women can come too.

Why does Blogger not create paragraphs? Why??

And when I "remove formatting," why does blogger replace a line break with two line breaks? There must be a sound reason. I don't know what it is. It drives me nuts not understanding.