Wherebob, i don't know if you ever got your problem fixed, but i found another remedy that involves editing your registry. Give it a try if the previous method didn't work.
Open your registry and drill down to the following key.
[HKEY_CURRENT_USER\Software\Microsoft\Internet Explorer\Main]
Create a new String value, or modify the existing value called 'Enable AutoImageResize' using the settings below.
Settings:
User Key: [HKEY_CURRENT_USER\Software\Microsoft\Internet Explorer\Main]
Name: Enable AutoImageResize
Type: REG_SZ (String Value)
Value: Yes or No
Exit your registry, you may need to restart or log out of Windows for the change to take effect.
Note: This setting is only applicable to Internet Explorer 5.0 and above.