Not quite sure what you mean by "fit". If you mean wrap exactly around the shape, the answer is no. If you mean fit the square, or other shape, frame to the height and width of the image, select the image and go to Object menu/fitting.
The frame means nothing in final output as long as it's not filled or stroked with a color, so overlapping the frames well over other images will not effect the work.
Using OSX 10.3.9 on a G4 & G5