What's the best way to save an 8.5 x 11 image for use as a page background in a PDF?

What's the best way to save an 8.5 x 11 image for use as a page background in a PDF? My goal is to have a relatively small final .pdf file size that includes numerous pages with full 8.5 x 11 images as backgrounds in the document. If I save at 8.5 x 11 and 72dpi (example), the image is not 8.5 x 11, and the quality is not good enough. I need help with size, dpi, and file format to save as before I place it in InDesign and then save as a .pdf.
Thanks,
Jim

Do exactly what I said then. Create the InDesign document of the required dimension, and chose whether it will be high quality print, or Interactive PDF. It really doesn't mater what format you bring the image into that document. It can be JPG, PNG, but I usually use native Photoshop PSD. The image does have to be of high enough resolution, but it can be many times bigger than iis required for the final export. (InDesign does not import the image, but rather references it on your hard drive.)
When you have placed your text and finished your page, then export it to PDF, but go through the tabs chosing suitable settings. If the image needs to be downsized, InDesign will do that at this stage while building the PDF.
If you can tell us how this presentation will be made (Projector, overhead projector, printed page etc. or just emailed to the end users) we can help you more with the final output settings.

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