Sitecore Friday Best Practice: Dynamically Resizing Images Using Sitecore. Performance is an "Acchilles heel" of many image-heavy websites. Sitecore provides a way to dynamically re-size images on the fly to provide optimal quality and dimensions dramatically improving page load speed and preventing content editors from shooting themselves in the foot.
Media resizing options by John West: http://www.sitecore.net/learn/blogs/technical-blogs/john-west-sitecore-blog/posts/2011/05/media-options-and-query-string-parameters-in-the-sitecore-aspnet-cms.aspx
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