I'm not understanding your question. Pictures are automatically resized to fit your screen. Do you mean that your pictures are too SMALL, and that they're getting "blown up" too much?
Bottom line: pictures from websites are generally too low-res to be used as good desktop images. You need an image that has at least the same resolution as your monitor or better. You can find out the resolution of your monitor by going to system preferences and choosing Displays and looking that list for the highest resolution (in Lion, this should be at the top of the list; in previous OSes, it's at the bottom*).
*another lovely "little" touch in Lion that makes more sense than the "old" way!
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