I tried cut and paste to get to a smaller image, but that worked for crud. So now I open it up into paint, go to the stretch/skew and change the 100's in the height and width to 60. Then I save to a new file name (so I can still access the original untouched picture) and check the size in find file. I continue to shrink until I reach 85 to 90kb. (I had one that was exactly 100kb reject)
Works much better than cut and paste.