Does anyone know of a way to wrap text around an object like in Indesign?
I'm writing a childrems book and it would help alot.

like on a car?

You can go to effects and use text effect or just right click the text and go to text effects or warp. Another way is to use tube, sphere or pinch all of these are in Corel and PS. you just mask the area you want to shape in or out.

No not like that something like this

(picture) Text TextTextTextTextTextTextText
(picture) TextTextTextTextTextTextTextText
(picture) TextTextTextTextTextTextTextText
TextTextTextTextTextTextTextTextText

I know it's a pretty crappy example but it'a the best i can do with a text only interface.

As far as I know text is always in a continuous blokc. Of course you could use the space bar... but I don't think PS will do it for you automatically. Keep in mind though, I am no expert.

The only way I can think of doing it is by allowing the grid to show up in the background, then make one text box for one continuous block, then (using the grid to help place the box in the right place) making another continuous block under the image. It's kind of a sucky way around the whole thing, but it's all I can think of.

If you want to have the picture and text separate, then there is no need to use photoshop at all. You could just use a standard word processing package. They usually have options on them so that you can specify how you want the text to interact with the pictures.

Have you tryed converting the image to a draw or publisher program. that mey work. I know Coral will except layers from another program.

I dont have Corel though.