Indesign Image Manipulation - Layers

[user500]

I installed InDesign CS2 4.0 yesterday and even i know Adobe products this is not one of them

OK. My problem is this :

I try to place some images from jpg file or drag and drop from photoshop 7.0.1 that they have circular design
However the space outside the circle is filled with white space to fill the area of a rectangle

How i can get rid of the unwanted space and retain the original design of the image - layer ?

Is there any image manipulation feature to indesign ?

(I only found the 'edit original' which leads me to acdsee that is the associated program for this file format and the erase tool from the pencil icon box)

 

[jmgalvin]

Click on the Frame tool to fetr the flyout selections. Pick Elipse and insert the frame. Put the pic in this. If images are already on the document, cut or Copy, select eleipse frame and "paste into" on edit menu.

Using OSX 10.3.9 on a G4

 

[eospsd]

select the frame where the picture is placed
then

object>clipping path>detect edges

make sure the picture is in a frame and the frame is set to no fill