I'm teaching a WordPress course using Atahualpa as my example theme, and I need to solve this ASAP.
I've tested this out with Twenty-Ten and there's no problem, so I'm sure it's the latest version of Atahualpa interacting with the latest version of WP. It's a new install, with no plugins, right out of the box.
In images without captions, I can use the image settings to set the image align-left and to create a 15px horizontal space between the image and the text on the page. BUT, when I add a caption to the image, the horizontal spacing no longer works properly and I see image you see in the attachment. If you check the URL http://burningcities.com/uncategoriz...in-particular/ then you can see that the caption & box display properly, but the gutter is not 15px.
Any idea what's going on?