Index: src/main/webapp/javascript/kaltura-display.js
===================================================================
--- src/main/webapp/javascript/kaltura-display.js	(revision 98187)
+++ src/main/webapp/javascript/kaltura-display.js	(working copy)
@@ -16,9 +16,57 @@
 // http://jshint.com/
 /*global jQuery: true, kaltura: true, mediaSelector: true, alert: true, confirm: true */
 $(function(){
-
+    
+    /* 
+     *  look through each of the div.kaltura-media elements that have embedded div.kaltura-media elements
+     *  promote the embedded div.kaltura-media elements to the same level as the parent container
+     *  if the embedded div.kaltura-media element is before the parent's image or non-blank text, 
+     *  promote it before the parent; otherwise after the parent
+     */
+    var promoteImages = function(doc) {
+        $(doc).find("div.kaltura-media:has(div.kaltura-media)").each(function() {
+            var foundImage = false;
+            
+            // had to go native javascript in order to see the text node in context
+            // with the other node types.  Newer versions of jQuery support "content()" function,
+            // which solves this problem
+            for (var i = 0; i < this.childNodes.length; i++) {
+                var child = this.childNodes[i];
+                if (child.nodeName === "IMG" || (child.nodeType === 3 && child.textContent.trim() !== "")) {
+                    foundImage = true;
+                } else if (child.nodeName === "DIV") {
+                    if (!foundImage) {
+                        $(child).insertBefore($(this));
+                        i--;  // moving the child removes it from childNodes
+                    } else {
+                        $(child).insertAfter($(this));
+                        i--;
+                    } 
+                }
+            }
+        });
+    };
+    
+    var promoteText = function(doc) {
+        $(doc).find("div.kaltura-media").each(function(idx, div) {
+            var length = div.childNodes.length;
+            for (var i = 0; i < length; i++) {
+                var childNode = div.childNodes[i];
+                if (childNode.nodeType === 3) { // text nodes only
+                    $("<span>" + childNode.textContent + "</span>").insertAfter($(div));                    
+                }
+            }
+        });
+    };
+    
     var displayKaltura = function(doc) {
-
+        
+        promoteImages(doc);
+        promoteText(doc);
+        
+        // remove div's without embedded images
+        $(doc).find("div.kaltura-media:not(:has(img))").remove();
+        
         // find kaltura placeholder divs and process each one
         $(doc).find("div.kaltura-media").each(function(idx, div){