I am probably being dense and have only been playing with K2 for a few hours but:

I want the picture associated with the article to display on one side of the item once it is opened and the text to appear alongside it.
Do I need to do a template override to achieve this or if there a simpler way?

Try using firebug....find the image tag and add a float left and some padding to the right

Many thanks

I was presuming it required an override but thought there might be a quicker way.

What I am actually looking for is a way to set the picture in the body text and have the body text flow round it.

I appreciate that I could simply insert a picture into the text but we are actually working with an app that will fire a complete piece of multi-media journalism (video, audio text and stills) straight to a web site. If we can easily embed the picture in the body text without too much playing with overides it will make it easier for others who might use the app.