Ok .I got mine working. A few things I modified for others who may care.
I use vb 3.0.7 so I don't know if this will work for older boards
The original hack works once the thread has been posted. however I noticed that when you post a new thread and "preview" it or reply and "preview" it, the photo is still full size.
I thought I fixed it but I had 007pigs hack installed too and since removing it ( i like this one better because it works better) the "preview" still shows it full size.
I tried replacing the body tag in templetes newreply and newthread but got errors and the image link wouldn't work

any ideas
Maybe its a javascript setting in newpost_preview templete?