The behaviour your document demonstrates exists in Word 2003 & earlier also. The solution is quite simple, though.



Simply move the 'Two, three.' text that follows the first table to the paragraph containing the 'Testing one ' before the table. Then delete the empty paragraph following the table and move the table itself so that it is positioned between 'Testing one ' and 'Two, three'. For me, a position 4.65cm from the left page border and 0.1cm below the paragraph seems to work OK. If you need more flexible positioning (e.g. to allow for variable pre-table content on the same line), insert the table into a borderless textbox, then position that as required.

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Cheers,
Paul Edstein
[Fmr MS MVP - Word]

Thanks again for the suggestion. I will try the text box idea.

I guess that Microsoft does not have enough demand for the ability to format a table to have the "In line with text" wrapping style. Otherwise they would have included that simpler option in Word already.