Jim,
Can I see the site? You probably have a lot more than 4 Gigs over there.
Blogger is very tricky to edit and they really limit what you can and cannot do. There are two ways for you to solve the problem:
1. You can search for a blogger template that fits your needs and upload it to your blog and that would be it.
2. You can install Wordpress and do whatever you want to it (I can walk you through the install and help you with customizing it).
Wordpress, in my view, is the best CMS out there with Joomla being a close second. Most people think of wordpress as just a blogging solution but I know many people who build their entire sites on Wordpress. Companies like the New York Times, Fox News, and CNN all have sites that were built on wordpress. Its extremely powerful.
So either way...you can do it. If you need any more help, just PM me and I will give you my email...I dont know if we are allowed to share email addresses here so just PM me if you need help. I'm a webmaster/internet marketer for a living and have been full time for 3 years.
Sorry I just saw the Image question...Now again, I dont use Blogger...but what I did was I put up a quick blog to test some stuff out for you.
They have a whole bunch of what they call "gadgets" that may help you out. I looked around for a few minutes and I found a way to do what you want with the pictures.
http://kenny-cannon.blogspot.com/ Go there and see if you like how those images are.
Again, its hard because Blogger limits the amount of code you can alter.
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