You'll save a lot of room on the page if you switch from centered images to aligning them left or right (I prefer right). That way the text will flow around them like for the TOC.
You can use the Image tool or just handcode it:
(put square brackets around the following, and use the ID of your photo instead of 12345)
img:12345:alignright:small:here is a caption
"Got tight last night on absinthe and did knife tricks. Great success shooting the knife into the piano. The woodworms are so bad and eat hell out of all furniture that you can always claim the woodworms did it."