OK, so what's going on? I tried all your suggestions, unclicked "shrink to fit", used a same size pixel picture, used a big one, a smaller one, clicked and unclicked the "shrink" thing. I can't figure it out. I've never had this problem!!!! I've always managed to get my pictures in there just like I wanted them!! ARRRGGGHHH! Totally frustrated!!!!
I've also checked the template and went to a standard template - default settings on it.
No, this is not current snow, this is from last year.... but thanks for your help!!! Guess I'll keep trying!!! This is the first REAL problem I've had with blogger that I couldn't figure out!!! Went to Blogger help and I'm still not having any luck...
