It is best to use a graphic program such as Photoshop or Fireworks to adjust the size.
How are you reducing them now?
I'm using PS. A friend suggested I export for Web, and reduce just a bit at a time. That's helped. Not perfect, but better. I need them really small. The original image was 2565 x 2250 at 300 dpi. I need about 56x56... It's still a tiny bit burred, but I can live with it, if I can't do anything else. Any suggestions would be greatly appreciated.
At that much of a reduction you are losing 90% of the pixels. No matter what you do you will not get good quality at that much of a reduction.