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Typically, images up to 13 inches wide are displayed without causing the horizontal scroll bar to appear when the browser is full-screen. Wider images make scrolling necessary and may cause the page, the wiki markup, or both, to be displayed improperly so that lines no longer wrap.
 
You can attach images at any size and change the display size in Confluence. Thus, you can use the original image capture which provides the best resolution with the least loss of data. Try specifying the width only, in even increments calculated based on 72 pixels per inch:
 
Image Width in Inches = 13, Width in Pixels = 936
Image Width in Inches = 12, Width in Pixels = 864
Image Width in Inches = 11, Width in Pixels = 792
Image Width in Inches = 10, Width in Pixels = 720
Image Width in Inches = 9, Width in Pixels = 648
Image Width in Inches = 8, Width in Pixels = 576
 
If you need to re-size your image, you can so so in PowerPoint by following the steps in this tip. You can also use a tool such as PaintShopPro or PhotoShop and re-size the image as a percentage of the original size.

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This page includes the following:

How to insert an image using the Rich Text editor

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1. Open the page on which you want to see the image.
2. Click the Insert/Edit Image icon and complete the dialog; this Atlassian page has detailed steps.

You can also insert an image in the wiki markup.

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Source for Confluence information: http://confluence.atlassian.com/display/DOC/Displaying+an+Image May 16, 2008

Note
title Image Size Limits and Requirements
Typically, images up to 13 inches wide are displayed without causing the horizontal scroll bar to appear when the browser is full-screen. Wider images make scrolling necessary and may cause the page, the wiki markup, or both, to be displayed improperly so that lines no longer wrap.   You can attach images at any size and change the display size in Confluence. Thus, you can use the original image capture which provides the best resolution with the least loss of data. Try specifying the width only, in even increments calculated based on 72 pixels per inch:   Image Width in Inches = 13, Width in Pixels = 936 Image Width in Inches = 12, Width in Pixels = 864 Image Width in Inches = 11, Width in Pixels = 792 Image Width in Inches = 10, Width in Pixels = 720 Image Width in Inches = 9, Width in Pixels = 648 Image Width in Inches = 8, Width in Pixels = 576   If you need to re-size your image, you can so so in PowerPoint by following the steps in this tip. You can also use a tool such as PaintShopPro or PhotoShop and re-size the image as a percentage of the original size.

Tip
title Tip
If the image is not rendered properly in IE 7, it's necessary to resize in a tool, either to the exact dimensions or to a percentage of the original size. If the image was imported from Microsoft Word, removing the exact dimensions from the wiki markup often solves the problem. If the image then becomes too large, resize it to a percentage of the original size.