Best as in best image quality or best as in easiest for an end user to do with some compromise in quality.
Reducing size is a tricky issue, and why LCDs often don't operate well at non-native resolutions.
For quick reduction you can download something like irfanview (freeware image viewer that will also resample/resize) and just take whatever it gives you for quality for the different image pixel sizes.
For more quality use photoshop and convert it to a raw or 24bpp TIFF format, then experiment with the various lossy methods and quality levels to find what suits you best. In Photoshop, with jpegs you can set various types of jpegs (decode time vs. file size) quality level (umm quality vs. file size) and overall image size. You can tailor to what suits you best.