Cool project! I'm curious, why the straight axle rather than the Mustang II front end? Seems like the engine would fit fine either way.
Looks like you've figured out how to resize the pictures, but for what its worth, I always open the files up in Paint, and just resize them to 30% of the original size; that has always worked well for me and its easy. Also, if you want the pictures to show up full size in your post, you have to host them online. Try postimage.org for that, its free and pretty easy.