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IMO an image should always be displayed at it's true size since images resized with HTML always look crappy. If your pic isn't the size you need it to be, edit with PS or other image editing SW.
And you still should enter the dimensions in the code since this will make the page load faster (at least that's what I was taught; your browser won't have to figure out the dimensions). I could be wrong about this last part, but not the crappy-looking part.
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