I got photoshop CS2 a few weeks back. I used photshop 7.0 but now with CS2 I don't know how to resize stuff in the sig. Now I have to resize it via Image - Image size. I don't really know how to explain but I hope you know what I mean.
Or again short cut...u can click on image layer... CTRL + T and use ur mouse curson to resize to your liking! ^_^