This modification is basically finished. There may be a little more tweaking (to get the notification bar to match the look & feel of the forum a tiny bit better, and the defaults may change) but it seems to be working extremely well right now.
You may notice the notification bar is not that horrible yellow color all the other forums have with that silly yellow triangle icon. Also those with Internet Explorer and Chrome should not experience any of the ugly pixelation of the images when they are resized.
If you'd like to change the resize settings, you can disable the feature or change the width and/or height limits to your heart's content. You can find those settings and directions on how to modify them here:
User CP
→ Edit Options
→ The Image Resizer
I'd like to thank Vadim and others for pushing for the change and Cliff for doing such a great job in making this happen and not settling for the normal implementations of this mod. Even I'm satisfied with it.