I'm not sure I can help without seeing the problem, but anyway:
1) If I understand correctly, you want two images left and right with the text running between them. The theme you're using is relatively narrow, so of course this will only work well with very small thumbnails. Yes, you set the alignment of the one to left and the alignment of the other to right. Align left and align right means that the rest of the content will wrap around, so the order must be l.a. image - r.a. image - text, with no line or paragraph breaks separating them. Captions or no captions makes no difference (unless you mess things up - see below).
2) Again if I understand correctly, the grey frame around the image didn't neatly enclose the image (as in your post now) but was larger. That happens when you disrupt the code of the captioned image. Assuming you're using the Visual editor: a) after inserting a captioned image, make sure you move the cursor outside the caption area before doing anything else; b) never highlight the caption to try change its formatting via any of the tools of the editor: image captions aren't directly editable. If you see a captioned image with a messed-up frame in your post, there's no way you can correct it: you just delete the image and re-insert it, paying attention to the two things I pointed out. In general, it's safer to add all the text first then insert captioned images where you want them.
okiwi2
