Adding Mp3 Album Art

Hi Guys.
I have about thousand CDs in my collection that have been ripped to hard drive using WMP in Mp3 format.
WMP permanently adds all the album info automatically, but does not add album art. It retrieves art from the web to display on the monitor, but doesn't save it. So when I load the files in my Sony Mp3 player or my car, I don't get any art.

So adding art is no problem with Mp3 taggers. My question is, how to properly resize the images. I've seen other people's art that's 300x300 and 40kbs, but still fills the screen. When I resize an image to I either get a filesize too big or an image that looks too small.
Is there a free software that will keep the image size but reduce the file size?

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