I use PS Elements 2 as well and don't have a problem. Are you using the 'Save for the Web' facility? Just open your image, select 'Save for the Web' and when the window opens up choose a size of, say 175 x 175, choose high quality jpeg and save. Very occasionally I've had to change to medium quality but high is usually OK. The jpeg will usually be somewhere between 12 and 15 kb. Your image has to be 72 dpi to start with. I'm not very good at explaining but hope this helps. Feel free to email me if I can help any further.

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