I am not too sure quite what your problem is - the photo's are too big, so when you insert them into a word doc they are huge and take up too many MB's to send on an email or print the document? I compress/resize using Irfan viewer
http://www.irfanview.com/main_download_engl.ht m (go into irfan and edit and resize - 75 for a thumbnail, 500-750 for a reasonable pic) save that as (example) carrie becomes carrie1......go into word doc and insert, say carrie1 and there is the reduced size pic on the word doc. Irfan will resize and compress it.