Text wrap around objects is displayed in the source pane as indented, i.e. narrower than the normal column width (only if the text is justified). Please note that the object which caused text to wrap, i.e. a image is not displayed in the source pane, but only the hole it produces. Use the WYSIWYG pane to view the image.
The text wrapped around an object is always indented in the source pane from the right side, even when the object is actually on the left side of the wrapped text.