New Post: Image upload/re-sizing question

Hello, I have configured the provider to have a max size for uploaded images of 800x800 px. However, when I test this, the image is not re sized upon upload. Is there anything else I need to do? Please see screenshot in link below.

https://docs.google.com/a/sunsethill.ca/file/d/0BxuN-IPbJH_UenJSeDNvcE9aNXc