[QUOTE=Exapno Mapcase]
I see the distinction.
Then I guess the question is, is there a fix - a program, maybe - that allows you to resize naked jpeg’s?
And yes, I realize the double meaning there! 
[/QUOTE]
If you want to resize a local image, you can use any reasonable image-editing program: Paint, ImageMagick, Photoshop, the GIMP, …
But IIUC you have a problem with large images embedded in remote HTML pages; you’d like the images to be smaller even if the HTML says otherwise (or, more likely, doesn’t say at all, in which case the image size defaults to its “natural” 1-pixel-per-pixel size). It’s hard to give a good general fix here. However, one approach you could use would be to write a small JavaScript applet which looks for large images in a web page and forces them to resize. Here is a very basic version, not made browser-independent or otherwise very nice:
javascript:
ia = document.getElementsByTagName("img");
for ( n = 0; n < ia.length; ++n ) {
x = ia[n].offsetWidth;
y = ia[n].offsetHeight;
sx = sy = 1;
if ( x > 500 ) sx = 500/x;
if ( y > 400 ) sy = 400/y;
s = sx < sy ? sx : sy;
ia[n].style.width = Math.floor(s*x) + "px";
ia[n].style.height = Math.floor(s*y) + "px";
}
void 0
This code loops through all images on the current web page (it will not descend into frames or iframes, however; it also won’t resize background images or embedded Flash); whenever it finds one more than 500 pixels wide or 400 pixels tall it rescales (isotropically) to fit in a 500x400 box. You may want to change this code to look for images with a large area (e.g., x*y>1000000) to avoid rescaling things like separator bars and struts, which are sometimes used in structural layout of web pages.
To use this, create a version of this code on a single line, like this:
javascript:ia=document.getElementsByTagName('img');for(n=0;n<ia.length;++n){x=ia[n].offsetWidth;y=ia[n].offsetHeight;sx=sy=1;if(x>500){sx=500/x;}if(y>400){sy=400/y;}s=sx<sy?sx:sy;ia[n].style.width=Math.floor(s*x)+'px';ia[n].style.height=Math.floor(s*y)+'px';}void 0
and paste it into your address bar when you’re at an offending web page. To make it easier, you can save this code as a “bookmarklet” available by a click on your Links toolbar, or presumably whatever the IE7 equivalent is. (On IE6, create a new Link by dragging something onto the Links toolbar. Then right-click it to get Properties. Under the “General” tab give the link a name like “Image resize”; under the “Web Document” tab paste this code in as the URL.)
This works for me on IEv6 and Mozilla 1.7.3; I don’t have IE7 so I can’t test it there.