option number 2: right click on the picture and choose "open with..." and select "microsoft office picture manager". once the software opens the picture, chose the "picture" dropdown box and then hit "resize". that will open a table on the right side of the screen. at that point, resize it to whatever side you think is best. i usually chose "web-large".
of course, this only works if you have microsoft office. but i think it's a really easy way to resize images.