Did you make any modifications to that part? Also, what browser are you using? So far on my local test site, I cannot replicate what you are showing.
For the continue reading part…that happens because the image floats to the left which means the more summary post text that is there, it will also float below the image. The only way would be to use a taller image, or make your summary text part shorter so you gain an extra line of space; the continue reading link would then float up below the summary.