I tried resizing a flower image 545 x 438 pixels at 300 resolution. I used the menu Image> Resize and resized it by 25 percent. That made it really small. When I pasted it into an 8 x 8 inch LO it looked way too small. Dragging the selection handles to increase the size made for a poor quality image. Maybe you are trying to resize it too much. Also make sure the "Lock Aspect Ratio"box is checked.