I have Paint Shop Pro 9, which I use for all my photo editing. It has a toolbar which allows you to optimise photos for the web. The toolbar contains a 'Jpeg optimizer'. If you click on this you are presented with a wizard option which is pretty nifty for shrinking images. I stumbled on this the other day when trying to shrink some photos for a Powerpoint presentation. Because of the particular application that I was working with it took me a while to realise that it was the web optimiser that I needed.