You've got ALL the right hardware Tom, and Vikki squared you away on this.
I'd suggest using a 800x600 on the camera if you have that option in the camera setup. That would keep most pictures (JPG format preferred) to well under 1MB per photo. If it is a very important picture to you for prosperity reasons (family and friend pics, important moments, ect), the higher the resolution the better by all means. You can always use a program to cut it down to smaller size for sharing on email.
I'll post some examples here:
1600 x 1200 (but only 275 KB file size) Picture is always TOO big for the website and it screws everything up...makes people mad!
800 x 600 (only 90 KB file size)
640 x 480 (smaller 61 KB size file)
On websites and such, the 800 x 600 is the best way to go.
'68 428 HO M3 Monster, 4-on-the-floor! Need I say more?