Download a free software like irfanview. Then change the resolution by going to resize/resample on, I think, the view menu. Change it to 800x600, or 640x480, or whatever. Then go to file menu and save as. There you will have the opportunity to set the quality to a ratio that will give you the size you want. Save it to 100% and check your file size. Knock the quality down until your file size is right. Play with it a little, and you'll be rolling in no time.
I'm posting this without the ability to check it out in the software, but I think this is accurate.
Your Olympus Camedia Master program has a resize option. Pick Image, and then Resize.... Just reduce the number of pixels so that the larger number is reduced down to 800, or whatever is accepted at this site.