The reason the words are missing is that the sidebar is only 300px wide and you have an image and caption in there that are 478px wide and "overflow" in the sidebar is hidden. Delete the code you have now and put in this code.
[caption id="" align="alignnone" width="300" caption="Flying the flag for Spain on World Cup Final night with my friend and former Sunday People colleague John Moynihan"]<img class=" " title="Flying the flag for Spain" src="http://grumpyoldgran.files.wordpress.com/2010/12/donna-and-john-world-cup-final-night-in-guardamar-2010.jpg" alt="Flying the flag for Spain" width="300" />[/caption]
The reason the background and border are not showing up is that the "caption CSS" doesn't work in the sidebar, only in posts and pages.