Itai:
I've messed with this for some time and I'm getting closer to your answer, but I'm not saavy enough with CSS to make it perfect. Perhaps your better at this. What I did was to apply a suggestion from the
Button text multiline forum thread as follows:
Default.aspx:
Setting the line-height and float css properties helps to keep the text within the button and to the right of the image. I just haven't figured out how to align text and image correctly.
See the attached "wrapped_text_on_toolbar_button.png" image for my results.
Hope this helps!