I have seen a lot of bloggers have issues with Photobucket sizing their backgrounds correctly, and buttons as well. I learned something recently when I was trying to first upload buttons, then trying to upload a background image. The buttons were too large no matter how many times I checked the sizes. I finally had to log out of Photobucket, then log back in to get the sizes right. Here's a good rule of thumb when using Photobucket: TINY and SMALL for tabs and buttons, and 1 megabyte file size for blog backgrounds. Here’s how you change the sizes in Photobucket.
Once you CLICK MORE OPTIONS, you will see the popup window. Then you will make your selection of size you would like.
It seems to me the trick is to log in and out of Photobucket to get the size you want. I believe there is a glitch in the system. When I was making buttons the other day, I finally had to log out and select TINY for my buttons. No matter how hard I tried the button size would not come out right. I think this is something relatively new because I never had this issue before.
Just as a side note: Scrapbook Flair allows you to upload any pages full size (up to like 250 images) before you have to buy their more premium service. If you keep the resolution at 72 or 96 pixels for webbing viewing, it lowers the amount of space you use. I also love Scrapbook Flair for the free downloads and the awesome community of scrappers! Click here for the latest FREEBIES.