Since \includegraphics places images upon the text baseline, I here use \raisebox to shift the figures down (1/2 of their height - 1/2 the height of a textline). Then, by placing symmetric \hspaces around the word "and", I can achieve a symmetric layout. I use % at the end of the lines to prevent stray spaces from getting introduced.
\documentclass{article}
\usepackage[demo]{graphicx}
\begin{document}
Text Text Text Text Text Text Text Text Text Text Text Text Text Text
Text Text Text Text Text Text Text Text Text Text Text Text Text Text
Text Text
\begin{center}
\raisebox{\dimexpr-.5\height+.5\ht\strutbox}%
{\includegraphics[width=1in,height=1in]{black_square}}%
\hspace{.5in}%
and%
\hspace{.5in}%
\raisebox{\dimexpr-.5\height+.5\ht\strutbox}%
{\includegraphics[width=1in,height=1in]{black_square}}
\par\end{center}
Text Text Text Text Text Text Text Text Text Text Text Text Text Text
Text Text Text Text Text Text Text Text Text Text Text Text Text Text
Text Text
\end{document}

If you wanted the figures to be exactly spaced between the margin and the middle text, this would suffice, replacing the center environment with the appropriate \hfils, making sure to not indent the "paragraph" on which the figures appear.
\documentclass{article}
\usepackage[demo]{graphicx}
\begin{document}
Text Text Text Text Text Text Text Text Text Text Text Text Text Text
Text Text Text Text Text Text Text Text Text Text Text Text Text Text
Text Text
\medskip
\noindent
\hfil%
\raisebox{\dimexpr-.5\height+.5\ht\strutbox}%
{\includegraphics[width=1in,height=1in]{black_square}}%
\hfil%
and%
\hfil%
\raisebox{\dimexpr-.5\height+.5\ht\strutbox}%
{\includegraphics[width=1in,height=1in]{black_square}}%
\hfil%
\par\medskip
Text Text Text Text Text Text Text Text Text Text Text Text Text Text
Text Text Text Text Text Text Text Text Text Text Text Text Text Text
Text Text
\medskip
\noindent
\hfil%
\raisebox{\dimexpr-.5\height+.5\ht\strutbox}%
{\includegraphics[width=1.3in,height=1.3in]{black_square}}%
\hfil%
and%
\hfil%
\raisebox{\dimexpr-.5\height+.5\ht\strutbox}%
{\includegraphics[width=1.3in,height=1.3in]{black_square}}%
\hfil%
\par\medskip
Text Text Text Text Text Text Text Text Text Text Text Text Text Text
Text Text Text Text Text Text Text Text Text Text Text Text Text Text
Text Text
\end{document}

\includegraphicsplaces images upon the text baseline" ? Why exactly is the space between the text above and below the picture the same if you raise it ? – l7ll7 May 21 '14 at 13:07\medskip \noindent \hfil%before the picture and the\medskipafter it from your second code sample. Is this just a replacement for\begin{center}and\end{center}? – l7ll7 May 21 '14 at 13:15xyz\includegrphics{}, the bottom of the image will be aligned with the bottom of thex(the baseline). So, one must either raise the text, or lower the figure to achieve your vertical centering goal. I chose to lower the figures. – Steven B. Segletes May 21 '14 at 13:27centerenvironment is that it plays some havoc with the "intensity", for lack of a better word, of the\hfilmacros. One can often use centering, and adjust the fills to some judicious combination of\hfiland\hfill, but I thought it easier to avoid thecenterenvironment altogether. The\medskips are just a way to add some vertical gap, which otherwise would have come from thecenterenvironment. – Steven B. Segletes May 21 '14 at 13:31\heightwill contain the height of the\includegraphicsimage, whereas\ht\strutboxis the height of one line of text. So, mathematically, if you wish to center two objects of those respective heights, the net adjustment has to be 1/2 the difference of those two heights. And that is the value of my adjustment. – Steven B. Segletes May 21 '14 at 13:44centerprecisely\medskipor is it a different value ? – l7ll7 May 21 '14 at 13:59center. However,\smallskip,\medskip, and/or\bigskipare commonly used by environments in that capacity. – Steven B. Segletes May 21 '14 at 14:01centerenvironment. It would appear to be the lengths\topsepand (I am inferring here)\bottomsep. – Steven B. Segletes May 21 '14 at 14:07