Hi pattycyn,
I'm going to reserve speculating further on the cause of this problem until we are able to get some information back from eBay's technical team about the examples we sent them. Regardless of whether eBay needs to fix something on their end or we need to change how these images are submitted, we will do what we can to get to the bottom of this.
I am confident that the size at which you are taking your images is not the problem but, given that your camera is currently set to take images with dimensions much greater than can be hosted on our site, you may find that you can upload images more efficiently if you make an adjustment to that setting.
As it stands now, our site is able to host images with dimensions up to 1280 x 1024 px so, if you upload image files that are larger than that, they will to approximately those dimensions. If you set your camera to “1600x1200”, less resizing will be necessary during the upload process and your images will still be as large as they can be once uploaded.
-Mike