by Davo Smith.
Mark, have you downloaded the code which is linked to from the tracker issue? If not, you won't find this feature in Moodle - we are discussing a proposed new feature, not something you can do in Moodle as it currently exists.
A general resize of uploaded images is outside the scope of this discussion, but may well be a valid request to open up in Moodle tracker. I could see it as an option after you have chosen a picture via the filepicker (defaulting to resize, with a no-resize option).