HELP LIKE THE WIND!

(Don't aks me where the title came from, seriously, I have no idea)

I need help! Okay, well, I came back from the beach and was so excited to finally have my lovely PSP back (version 9 if that makes a difference) and I get on and right away want to make something.

(sorry you had to go through the story)

But I tried to resize the image to make it icon-size and it got all pixally. Like, really pixally. But this had never happened before. It was dandy and fine before the trip.

This probably has a simple answer but I'm PSP retarded, so HELP, please!