Shawn,
Using Insert > Picture > New Photo Album is NOT a good piece of advice.
PowerPoint tends to create a shape the exact size of the slide, then use the
image as its fill color. If you want to make changes to the image, most of
the time you are "surely out of luck."
I know. I learned this the hard way. To convince yourself of that fact,
right click on the inserted "image" and observe its properties dialog box.
You'll see the image you just "inserted" in the COLOR FILL portion of the
dialog box. Also, a "real" inserted image will also NOT have the
transparency tool grayed out (on the picture toolbar.)
You can "resurrect" the picture by right-clicking on it and then saving it
as a Windows enhanced metafile, which you can then edit.
In short, the pictures are inserted as fill colors, NOT as images.
Use Shyam Pallai's image inserter wizard. It inserts the images themselves
and reformats them one at a time, with a lot of other options. This is a
great little program. (Shameless, un-compensated endorsement ....

)
When I can, I also use .PNG formatted pictures. They work out pretty well
to keep PowerPoint's size manageable. Most of my presentations are for my
anatomy & physiology lectures that rely heavily on graphics - I often
transform the publisher's image gallerty files into .PNG's to bring the file
size down.
BOTTOM LINE = Don't use Photoalbum.
--Bob--