The first letter and first line is styled in each instance of <p>. You
can modify and style any tag to look just about any way you want it to.
The photo of the mosaic tiles calls a class called "floatright" that moves the image to the rignt and puts a background and border on it. The float also causes the text to flow around it.
This paragraph has slightly different styling, its picking up the style
from Container and body, but the text is a little smaller and there is no special treatment for first letters or lines. It still flows around the photo of the mosaics above.
I'm adding another photo here and adding the class "floatleft" to the image
tag in this document.
Another neat tile shot with a "floatright" class in the image tag that
text must flow around. 
There
are so many interesting things you can do in CSS! I'm going to add one more
photo and add the "floatright" class to the image tag. 
Once you get used to the way float works, its great.
For a CSS styled page that is a little more complicated, look at:
CSS advanced sample.