Delete your existing site files.
Make sure you are using the tool correctly -
http://office.microsoft.com/en-us/assistance/HA011266301033.aspx
Be sure to save the pub file.
Re-publish the site with the fresh site files.
Make sure you clear browser cache.

Signature
David Bartosik - [MSFT MVP]
http://www.publishermvps.com
http://www.davidbartosik.com
> My web hosts have asked me to shrink the size of my image files on my
> website. I have down loaded the service pack to add the function onto my
> toolbar. However when I attempt to use it there are no adjustments made to
> the image and when I repeat the process the image size defaults to printing
> size rather than web page size. I would be grateful of any help