UPDATE:: Nevermind... I figured it out. I converted it to a smart object and did a free transform. Then I changed the canvas size to what I needed it to be... Wow! I really feel like I accomplished something today!!!
I'm reopening this discussion. The person I'm developing the Web site for thinks the banner I created using the "Free Transform" function looks good but it looks "stretched out". Is there a way around this? It really shouldn't be so difficult to get a larger image to shrink to a smaller image, should it?