Problems with document flowing after placing a movie inline

I'm trying to place a movie inline and have the contents surrounding it reflow, instead when the movie is placed it overlaps all of the contents above it.

I'm placing a movie using the following code:

paragraph.insertionPoints[-1].place(File("c:\\users\\kurt\\desktop\\movie\\test.flv"));

And this is the resulting behaviour:

The odd part is that when I tested this against blank templates I had these results, which are the result I was hoping for. The surrounding paragraphs simply reflow to accomodate the movie.

Any ideas on why the other document isn't reflowing to the placed movie?