Hi John,
I'm not quite sure why you have recently started having trouble with this option. It is normal for there to be some degree of distortion when you resize an image, but the proportions should remain consistent with the original when you do so by dragging the corner of an image within the description editor so the distortion should be minimal when you reduce the size of an image in this manner.
If you need any further assistance with this, please contact our customer support team by mousing over the “Help” tab within your account and selecting the “File Support Case” option and we will see what we can do to help you out.
-Mike