Hey, cool! Someone's actually interested in some markup used on my blog.
Actually, I also thought that div's were stripped (or converted to p's) but I did know that inline styles worked - for some things. I tried, and it worked.
To make the post in question, I started off by using a floated img with negative left and bottom margins and no border. (The k2-lite theme defines a border by default.) This worked in Firefox but the floating img was displayed above the text in I.E. 6, even though the img tag appeared before the text in the markup. To fix this, I had to use a good ol' div-with-background-and-placeholder trick. I was annoyed about this because it meant that I had to wrap the whole post in a div, instead of simply putting a nice, cohesive img tag above it.
Just in case you're interested, the image came from a Dreamfall desktop background, which I photoshoped a bit to make it suitable.