You can indeed align your photos, add vertical and horizonal space, even shrink a photo by percentages, all within the post editing area. You can add captions, too. Put your cursor where you want the image to go, generally. Use the Insert icon at the top left of the editing pane, looks like a t.v. screen. Insert via a URL, from your computer, or from the media library. Once it's there, click on the image, then click on the little picture frame icon, and you have more options.
You can position it, change the size, add a caption. Click on Advanced settings and you can do more.
I have the Scissors plugin which lets you do a lot of this from the screen where you are inserting from the media library. I also got the Tiny MCE Advanced plugin, which adds a ton of editing options.
http://larchmontgazette.com/wp27/200...in-celebrates/