Hi suitworld,
The reason that your custom template uses 400 x 300 px images is because you are using the [DESCRIPTION_AND_IMAGES] tag to identify where your images are to be placed.
In order to specify that this template is to use original images, please remove the [DESCRIPTION_AND_IMAGES] and replace it with a [DESCRIPTION] tag. Then, select "Original Images" from the "Choose Image Type:" pulldown menu and add the image tags to your template by placing the cursor in the appropriate area and clicking the "Image 1", "Image 2", "Image 3" etc. links on the right hand column of the template editor page. The tags generated by these links will appear as [IMAGE1_ORG], [IMAGE2_ORG], [IMAGE3_ORG], etc. Just be sure to include enough image tags to accomodate the maximum number of images you will be using in any auction.
If you would like further assistance with this matter, please file a support request using the appropriate link on our help page:
http://www.auctiva.com/free_auction_software_help/help.aspx-Mike