I use Thumbs Plus to get them down to 800 x 600 pixels, <280KB. They still look decent. I stay right at the upper limit of file size, though. Thumbs Plus lets you save the image, after you resize it (which really cuts down the file size to begin with) at 99%, 98%, 97%- and shows you the new file size, so you can save the max allowable size. I also crop them down as much as possible before resizing.
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