[SOLVED] How WYSIWYG is the WP Dashboard editor

We're using the WP Dashboard editor to edit both pages and posts. When the editor window is in "Visual" mode it seems like we should be able to drag and drop images to re-position within the text.

But, we're having all sorts of problems with the images and their captions becoming unattached and the like.

Is there a correct order in which things must be done or are we just crazy to think that the WP editor is up to this level of fine-grained formatting?

BTW -- should we be looking at some kind of plugin or something that would provide the increased capabilities we need?