Hey Peter, the p tag is coming from the WordPress
wpautop function I believe.
If I manually wrap the image in a span tag or anything else using the HTML code view, it works correctly on the frontend.
The issue is that a client not versed in html won't know to do that.
It would be nice to define how images are handled when inserted in the Wysiwyg field.
So, instead of the wpautop function doing it's thing on images in the wysiwyg field, maybe some further customization or settings would help clean up the frontend output when using images in this type of Metabox field.
Thanks!
John