How do I place an image from PS into InDesign?

Hi,
I created a notecard in Photoshop and need to put two on a page in InDesign CS3. I placed the graphic on the page but it's way larger than the designated paper size. I tried going to Object>Fitting to fix the problem but nothing happened. So I tried manually setting the height and width I needed the image to be on the page and it resized the image okay but I couldn't see the entire image within the new size. So my question is how do I place an image, get it to the dimensions I need (see dimensions below) and add two to a page?
FYI: The paper size is: 8.5 x 11 inches. The graphics are 4.25 x 5.5 inches. I need to print two to a page.
Thanks for the help.
ashmic

To add to M Blackburn's advise, the two selection tools will change what you can do.
The Selection tool (solid black arrow) will allow you to select the frame itself. It will only select the content if you click on the donut. When the frame is selected, you will see the frame with handles on the corners and centers of lines, and it will be in the color designated to the layer. The default color for layer one is blue, but this can be changed, so don't be thrown if it isn't blue for some reason. Dragging the handles will change the size and placement of the frame, and when moved toward the image, will crop it. Holding the shift key while dragging a handle will keep the frame within proportion (a 3"x5" rectangle will remain 3 units by 5 units, although those units will be larger or smaller than an inch, depending on whether you enlarge or shrink the frame).
The Direct Selection tool (white arrow) will select the content, rather than the frame. When selecting the content, you will see the handles on a bounding box around the content, and the color will be light brown. Dragging a handle will change the size of the image, and you can also drag the whole image to move it in relation to the frame, which can be used to crop the image as well. Holding shift will keep the image size proportional.
You should take notice of whether the frame color or the content color is what you see, because double-clicking with the Selection tool will toggle between frame and content, the way clicking within the donut will allow content to be edited while the Selection tool is active.
If you want to view the image size as a percentage, using the Direct Selection tool is what you want. If you use the Selection tool, you will see the percentage of the frame, which will change while you are dragging it, but as soon as you release the mouse button, it will show 100%. Switching to the Direct Selection tool will show you the percentage of reduction or enlargement of the image itself, and if the X and Y aren't the same, your image is out of proportion.
Lastly, the shift key, along with Command will probably be what you will use the most, as it will allow you to drag a corner of the frame of a placed image with the Selection tool and proportionally resize the content along with the frame.

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