I noticed with my install of WP 2.3.2, the image code impacted styling of text on the page. Looking at the code of the rendered page, I noticed the <p></p> tags ended up surrounding the inserted easy image code and text on the page got compacted.
I added a closing </p> (just before the div class) and opening <p> (just after the last </div> in the image-caption-easy.php file:
//Now replace image code with new div-ed image code.
$to_replace_with = "</p><div class=\"imagecaptioneasy imagecaptioneasy_" . $top_of_page.$align . "\" style=\"width:" . $width . "px;\">" . $image_code . "<br style=\"clear:both\" /><span>" . $caption_text . "</span></div><p> ";
This solved the problem.
Now I need to figure out how to get image capture easy working for headlines images on the front page of the site...