Make sure "Constrain Proportions" is checked in the lower left hand of the dialog box. This maintains aspect ratio(it would prevent your from skewing the image). Type in about 500 pixels in the Width field at the top under "Pixel Dimensions:". With "Constrain Proportions" checked, Photoshop will fill in the "Height" field automatically with the correct number of pixels to keep the same proportion, so your photo won't get skewed. Click "OK" to resize the photo to the new dimensions.
Your image may look like this. If it does, double-click on the "Hand" tool in the toolbar. This resizes the image to "Best Fit" your screen. Here's another tip, hit "Ctrl and the + key" (hold down the Ctrl key and keep it held down while you hit the "+" key) to zoom in incrementally. Every time you use this keystroke combination, Photoshop zooms in more. Conversely, you can use "Ctrl and the - key" to zoom out.
The image looks much better zoomed in like this, doesn't it?

Next to the "Hand" tool is the "Zoom" tool. Double-clicking on the "Zoom" tool will zoom in on your image to 100% and show you the actual on screen size of the image.
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