Abobe Photoshop Elements 5.0 resizing pictures?

Abobe Photoshop Elements 5.0 resizing pictures?
I just rencently got Photoshop Elements 5.0 and I have Windows XP service pack 2 and I read the help and did some things. I need to make some pictures smaller or bigger so the people I want in my banner look aroung the same size. When I try to resize the image it resiazes everything or I use the square tool and try to resize it my self but the pictures becomes out of shape. Also if I dont need all of my canvas that I created when I try to crop it t makes the pictures cut off. IS there a way to just get rid of the bottom od the canvas that I didn't do anything with? Here is a banner I made using photoshop and see the girls head is bigger cause I don't know how to resize it. http://i12.tinypic.com/2mcy245.jpg... I went to paint to cut off the extra canvas that was in the picture. I had used The Gimp before I used photoshop and with Gimp I knew how to resize pictures to place on another picture.
Additional Details
the crt + t makes my picture look bad. I guess I have to reseize myt pictures in gimp to make anything then.

while in the Transform tool, tick ON the "Constrain Proportions" tickbox at the top. then when you move a handle, the image will resize poprtionaltely instead of distorting.
Graffi
http://www.graficalicus.com

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