Photoshop 7 or Paint Shop Pro 7

Hi I was just wondering if there was any way where I can minimize all my pictures to the same size so that I can make a movie icon. For example, this picture.

and

I want to get rid of the black parts on the top and bottom and minimize it to a certain size. I can get rid of the black parts by cutting them out, but then the pictures won't be a standard size, so when I make them move they'll look jumpy. Like this



Please help?